https://www.taxtmi.com/circulars?id=67849 Demo vehicles used by authorised dealers to provide trial runs and demonstrate features promote sale of similar motor vehicles and therefore constitute use for "further supply of such motor vehicles," so ITC on those demo vehicles is not blocked under clause (a) of section 17(5). If such vehicles are used for staff transport or where the dealer acts only as a marketing agent and does not supply the vehicle on his own account, ITC remains blocked. Capitalisation does not bar ITC, but claiming depreciation on the tax component disallows ITC on that component and disposal of capitalised demo vehicles attracts output tax adjustments. en-us Fri, 04 Oct 2024 00:00:00 +0530 Fri, 11 Oct 2024 18:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=67849 Demo vehicles used by authorised dealers to provide trial runs and demonstrate features promote sale of similar motor vehicles and therefore constitute use for "further supply of such motor vehicles," so ITC on those demo vehicles is not blocked under clause (a) of section 17(5). If such vehicles are used for staff transport or where the dealer acts only as a marketing agent and does not supply the vehicle on his own account, ITC remains blocked. Capitalisation does not bar ITC, but claiming depreciation on the tax component disallows ITC on that component and disposal of capitalised demo vehicles attracts output tax adjustments. Circulars GST - States Fri, 04 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/circulars?id=67849