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2020 (11) TMI 1066 - AAAR - GSTInput tax credit - inward supply of Motor Vehicles which are used for demonstration purpose in the course of business of supply of motor vehicles - capital goods - utilisation of credit for the payment of output tax payable under this Act, allowed or not - HELD THAT:- Section 17 (5)(a) prescribes the condition in which input tax credit shall not be available on motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies:- (A) further supply of such motor vehicles; or (B) transportation of passengers; or (C) imparting training on driving such motor vehicle. The demo vehicles used for demonstration and for offering trial facility to customers, are not covered in above exceptions. The ruling of Madhya Pradesh Authority for Advance Ruling is agreed upon - the Appellant is not entitled to avail input tax credit on inward supply of motor vehicles which are used for demonstration purpose.
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