ITC on Mercedes purchase not eligible as applicant opted for a lower tax rate  

In re Noori Travels (GST AAR Telangana)

Noori Travels, a transportation service provider, sought clarification regarding the eligibility of Input Tax Credit (ITC) on the purchase of a Mercedes Benz CKD v213 e220d Exclusive MY 23 1.0. The applicant initially opted for a lower tax rate of 5% without claiming full ITC. However, from August 1, 2023, they transitioned to a higher tax rate of 12% with full ITC utilization.

The applicant aimed to claim ITC on the GST paid for the Mercedes purchase, amounting to Rs. 13,94,702. Despite the invoice being uploaded in J

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