https://www.taxtmi.com/article/detailed?id=10567 The principal legal issue is whether input tax credit on motor vehicles acquired as demo units is permissible under the GST exclusion for certain passenger vehicles, and whether subsequent sale of those demo vehicles satisfies the statutory further supply exception. Advance rulings are split: some permit ITC treating resale as further supply, others deny ITC on a literal view that demo use converts vehicles into second-hand goods outside the exception. In view of uncertainty and absence of clarification, a cautious approach is to avoid claiming ITC on purchase and instead apply a margin-based tax at resale. en-us Sat, 30 Jul 2022 15:07:02 +0530 Sat, 30 Jul 2022 15:07:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=10567 The principal legal issue is whether input tax credit on motor vehicles acquired as demo units is permissible under the GST exclusion for certain passenger vehicles, and whether subsequent sale of those demo vehicles satisfies the statutory further supply exception. Advance rulings are split: some permit ITC treating resale as further supply, others deny ITC on a literal view that demo use converts vehicles into second-hand goods outside the exception. In view of uncertainty and absence of clarification, a cautious approach is to avoid claiming ITC on purchase and instead apply a margin-based tax at resale. Articles Goods and Services Tax - GST Sat, 30 Jul 2022 15:07:02 +0530 https://www.taxtmi.com/article/detailed?id=10567