https://www.taxtmi.com/caselaws?id=755843 AAAR Goa ruled that a motor vehicle dealer cannot claim input tax credit on demonstration vehicles supplied by OEM at discounted rates. The vehicles were capitalized as assets per business practice and accounting treatment, distinguishing them from regular inventory. Since demo vehicles are not held for further supply but used as business assets, the exception under section 17(5)(a)(A) of GST Act does not apply. ITC on motor vehicles used for demonstration purposes was denied as they constitute capital goods rather than stock-in-trade. en-us Mon, 15 Apr 2024 00:00:00 +0530 Wed, 07 May 2025 11:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=755843 AAAR Goa ruled that a motor vehicle dealer cannot claim input tax credit on demonstration vehicles supplied by OEM at discounted rates. The vehicles were capitalized as assets per business practice and accounting treatment, distinguishing them from regular inventory. Since demo vehicles are not held for further supply but used as business assets, the exception under section 17(5)(a)(A) of GST Act does not apply. ITC on motor vehicles used for demonstration purposes was denied as they constitute capital goods rather than stock-in-trade. Case-Laws GST Mon, 15 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=755843