https://www.taxtmi.com/caselaws?id=419450 The AAAR Haryana ruled that input tax credit cannot be availed on demo cars as they do not qualify for the "further supply" exception under GST law. Demo vehicles are first used for demonstration purposes for approximately two years, losing their new vehicle character before being sold as second-hand goods. This usage pattern differs from vehicles purchased solely for resale. The authority held that allowing ITC on demo cars would contravene Section 17(5)(g) restrictions on motor vehicles used for personal/non-business purposes. Additionally, ITC on ancillary services like insurance and maintenance for demo vehicles was also denied under Section 17(5)(ab). en-us Mon, 28 Jun 2021 00:00:00 +0530 Wed, 02 Apr 2025 12:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=419450 The AAAR Haryana ruled that input tax credit cannot be availed on demo cars as they do not qualify for the "further supply" exception under GST law. Demo vehicles are first used for demonstration purposes for approximately two years, losing their new vehicle character before being sold as second-hand goods. This usage pattern differs from vehicles purchased solely for resale. The authority held that allowing ITC on demo cars would contravene Section 17(5)(g) restrictions on motor vehicles used for personal/non-business purposes. Additionally, ITC on ancillary services like insurance and maintenance for demo vehicles was also denied under Section 17(5)(ab). Case-Laws GST Mon, 28 Jun 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=419450