ITC on Motor Vehicles Used for Demonstration in Business Supply Treated as Capital Goods

In re Sai Service Private Limited (GST AAAR Goa)

The Applicant is NOT entitled to avail the Input Tax Credit charged on inward supply of motor vehicles which are used for demonstration purpose in the course of business of supply of motor vehicle as input tax credit on capital goods. As by capitalising the motor car it is treated as asset for use in the business and therefore such motor car cannot be said to be held for further supply.

FULL TEXT OF THE ORDER OF APPELLATE AUTHORITY FOR  ADVANCE RULING, GOA

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