Input tax credit on inward supply of motor vehicle used for demonstration purpose

In re Sai Service Pvt. Limited (GST AAR Telangana) No ITC available on test drive vehicles when retained as replacement vehicles The AAR, Telangana, in M/s. Sai Service Pvt. Limited [TSAAR order no. 13 of 2023 dated August 01, 2023] ruled that, Input Tax Credit (“ITC”) cannot be availed on test-drive vehicles when retained in a workshop as a replacement vehicle. Facts: M/s. Sai Service Pvt. Limited (“the Applicant”) is a dealer of MSIL, Bajaj, KTM, & Chetak Technology Limited and trades in pre-owned cars. The Applicant is also involved in providing servicing, repair, and related au...