https://www.taxtmi.com/caselaws?id=424626 The AAR, West Bengal held that a car dealer is entitled to input tax credit on demo vehicle purchases. The applicant purchased demo vehicles for test drives as mandated by the manufacturer, capitalizing them in books before eventual sale. The Authority ruled that despite capitalization and mandatory retention periods, demo vehicles are purchased for further supply, satisfying section 17(5)(a)(A) conditions. The business model involves keeping demo vehicles for specific periods before sale, which doesn't alter the purpose of further supply. Input tax credit on demo vehicle purchases can be set off against GST output tax liability. en-us Thu, 30 Jun 2022 00:00:00 +0530 Fri, 04 Apr 2025 12:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=424626 The AAR, West Bengal held that a car dealer is entitled to input tax credit on demo vehicle purchases. The applicant purchased demo vehicles for test drives as mandated by the manufacturer, capitalizing them in books before eventual sale. The Authority ruled that despite capitalization and mandatory retention periods, demo vehicles are purchased for further supply, satisfying section 17(5)(a)(A) conditions. The business model involves keeping demo vehicles for specific periods before sale, which doesn't alter the purpose of further supply. Input tax credit on demo vehicle purchases can be set off against GST output tax liability. Case-Laws GST Thu, 30 Jun 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=424626