https://www.taxtmi.com/caselaws?id=441413 The AAR held that ITC on demonstration motor vehicles depends on their ultimate use. Section 17(5) of CGST Act restricts ITC on motor vehicles despite business use. However, if vehicles are subsequently supplied (sold, leased, rented) within Section 7's definition, ITC becomes eligible as capitalization doesn't disqualify it when further supply occurs. The applicant's ITC eligibility depends on future events: if vehicles are sold/supplied, ITC is allowed; if retained as workshop replacement vehicles without further supply, ITC must be repaid per amended Section 16(4). en-us Tue, 01 Aug 2023 00:00:00 +0530 Fri, 18 Apr 2025 15:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=441413 The AAR held that ITC on demonstration motor vehicles depends on their ultimate use. Section 17(5) of CGST Act restricts ITC on motor vehicles despite business use. However, if vehicles are subsequently supplied (sold, leased, rented) within Section 7's definition, ITC becomes eligible as capitalization doesn't disqualify it when further supply occurs. The applicant's ITC eligibility depends on future events: if vehicles are sold/supplied, ITC is allowed; if retained as workshop replacement vehicles without further supply, ITC must be repaid per amended Section 16(4). Case-Laws GST Tue, 01 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=441413