ITC on Motor Vehicles for Automobile Benchmarking Service Not Available: Section 17(5)(a)

In re  A2MAC1 India Private Limited (GST AAR Tamilnadu) Tamil Nadu Authority for Advance Ruling (AAR) has held that M/s A2MAC1 India Private Limited is not eligible to claim Input Tax Credit (ITC) on the purchase of motor vehicles used for automobile benchmarking services. The ruling clarifies the applicability of Section 17(5)(a) of the CGST Act, 2017, which restricts ITC on motor vehicles unless they are used for specific taxable supplies. The applicant, engaged in providing Collaborative Automobile Benchmarking Services, disassembles new vehicles to analyze technology, cost, and performanc...