https://www.taxtmi.com/article/detailed?id=10757 Claiming Input Tax Credit on demo cars depends on whether they are capital goods capitalised in accounts and used in furtherance of business, but entitlement is constrained by an overriding statutory exclusion for motor vehicles except where used for specified taxable supplies (further supply, passenger transport, or training). Administrative rulings are divided: some allow ITC when demo cars are capitalised and used in business promotion; others deny ITC, treating demo cars as first used vehicles not received for further supply or as personal/visitor cars. A practical conflict exists with margin-based resale notifications that condition margin treatment on non-availment of ITC. en-us Mon, 17 Oct 2022 05:11:08 +0530 Mon, 17 Oct 2022 05:11:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=10757 Claiming Input Tax Credit on demo cars depends on whether they are capital goods capitalised in accounts and used in furtherance of business, but entitlement is constrained by an overriding statutory exclusion for motor vehicles except where used for specified taxable supplies (further supply, passenger transport, or training). Administrative rulings are divided: some allow ITC when demo cars are capitalised and used in business promotion; others deny ITC, treating demo cars as first used vehicles not received for further supply or as personal/visitor cars. A practical conflict exists with margin-based resale notifications that condition margin treatment on non-availment of ITC. Articles Goods and Services Tax - GST Mon, 17 Oct 2022 05:11:08 +0530 https://www.taxtmi.com/article/detailed?id=10757