https://www.taxtmi.com/article/detailed?id=12933 CBIC Circular No. 231/25/2024 GST rules that ITC on demo vehicles is not blocked by the motor vehicle exclusion because demo cars used by authorised dealers for business purposes fall under the exception in section 17(5)(a). Demo vehicles capitalized in the dealer's books qualify as capital goods and attract ITC subject to other statutory limits; however, if depreciation on the tax component has been claimed under income tax, or if the vehicle is used for non permitted purposes (e.g., staff transport), ITC is disallowed. Conflicting advance rulings existed but the circular clarifies availability for authorised dealers while preserving use based and depreciation related restrictions. en-us Tue, 17 Sep 2024 08:44:29 +0530 Tue, 17 Sep 2024 08:44:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=12933 CBIC Circular No. 231/25/2024 GST rules that ITC on demo vehicles is not blocked by the motor vehicle exclusion because demo cars used by authorised dealers for business purposes fall under the exception in section 17(5)(a). Demo vehicles capitalized in the dealer's books qualify as capital goods and attract ITC subject to other statutory limits; however, if depreciation on the tax component has been claimed under income tax, or if the vehicle is used for non permitted purposes (e.g., staff transport), ITC is disallowed. Conflicting advance rulings existed but the circular clarifies availability for authorised dealers while preserving use based and depreciation related restrictions. Articles Goods and Services Tax - GST Tue, 17 Sep 2024 08:44:29 +0530 https://www.taxtmi.com/article/detailed?id=12933