Demo Vehicles Capitalized by Dealers Qualify as Capital Goods for ITC

BMW India Pvt. Ltd. Vs Appellate Authority for Advance Ruling for the State of Haryana and another (Punjab and Haryana High Court) Summary: In the case of BMW India Pvt. Ltd. vs. Appellate Authority for Advance Ruling for the State of Haryana and another, the Punjab and Haryana High Court addressed the availability of Input Tax Credit (ITC) for demo vehicles. The Court referred to Circular No. 231/25/2024-GST dated September 10, 2024, issued by the Central Board of Indirect Taxes and Customs (CBIC), which clarified that demo vehicles used by authorized dealers to promote vehicle sales and capi...