https://www.taxtmi.com/circulars?id=67805 Demo vehicles used by authorised dealers to provide trial runs and demonstrate features promote sales and therefore qualify as being used for making further supply of such motor vehicles; accordingly, input tax credit on such demo vehicles is not blocked. Where demo vehicles are used for other purposes or where the dealer only provides marketing/agent services and does not make the supply on its own account, ITC is not available. If demo vehicles are capitalized they are treated as capital goods and ITC is permitted subject to the statutory depreciation limitation on the tax component and to adjustment on subsequent sale. en-us Fri, 13 Sep 2024 00:00:00 +0530 Thu, 19 Sep 2024 17:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=67805 Demo vehicles used by authorised dealers to provide trial runs and demonstrate features promote sales and therefore qualify as being used for making further supply of such motor vehicles; accordingly, input tax credit on such demo vehicles is not blocked. Where demo vehicles are used for other purposes or where the dealer only provides marketing/agent services and does not make the supply on its own account, ITC is not available. If demo vehicles are capitalized they are treated as capital goods and ITC is permitted subject to the statutory depreciation limitation on the tax component and to adjustment on subsequent sale. Circulars GST - States Fri, 13 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/circulars?id=67805