https://www.taxtmi.com/caselaws?id=751984 West Bengal AAR ruled that a Mercedes Benz dealer acting as commercial agent can claim input tax credit on demo cars purchased for demonstration and subsequent sale, despite selling at lower prices than purchase value. The restriction under section 17(5)(a)(A) GST Act doesn't apply to demo vehicles supplied after specified demonstration period. Demo cars retain original classification and tax rate upon sale. Reimbursement received from Mercedes Benz India for demo car sale losses constitutes taxable supply under "agreeing to tolerate an act" at 18% GST rate, classified as miscellaneous services. en-us Thu, 04 Apr 2024 00:00:00 +0530 Fri, 02 May 2025 18:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751984 West Bengal AAR ruled that a Mercedes Benz dealer acting as commercial agent can claim input tax credit on demo cars purchased for demonstration and subsequent sale, despite selling at lower prices than purchase value. The restriction under section 17(5)(a)(A) GST Act doesn't apply to demo vehicles supplied after specified demonstration period. Demo cars retain original classification and tax rate upon sale. Reimbursement received from Mercedes Benz India for demo car sale losses constitutes taxable supply under "agreeing to tolerate an act" at 18% GST rate, classified as miscellaneous services. Case-Laws GST Thu, 04 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751984