The asessee who is a dealer of vehicles had a stock of BSIII vehicles on 30.06.2017 which he claimed inn TRAN-1 for eligible duties. And further he sold these vehicles back to manufacturer after 01.07.2017 by issuing a tax invoice.
Department is disallowing credit of BSIII Vehicle claimed in TRAN-1 by a dealer of vehicles stating that these vehicles were disabled to be sold by the supreme court and cannot be said to be' further supply of such vehicles'
Pls guide with any case law if possible..
Dealer's GST Credit Claim for BSIII Vehicles Denied Due to Supreme Court Ban; Debate on Validity and Tax Implications A vehicle dealer claimed GST credit for BSIII vehicles in TRAN-1, which were in stock as of June 30, 2017, and sold back to the manufacturer after July 1, 2017. The tax department disallowed the credit, citing the Supreme Court's ban on selling these vehicles to consumers. Participants in the discussion debated the validity of the credit, with some arguing that selling back to the manufacturer under a tax invoice constituted a legitimate supply under GST rules. Others suggested the case was worth contesting, questioning the classification and tax implications of such vehicles. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
