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2020 (8) TMI 916 - AAR - GSTUtilization of Input GST - Whether Payment of GST Liability on sale of vehicle, spares, labour can be done by utilising the Input GST on purchase of Demo Vehicle, other expenses like Repairs & Maintenance, Insurance etc., relating to Demo Vehicle used for Demonstration and or Trial run purpose? - HELD THAT:- The demo cars purchased from supplier are being capitalised. The capital goods which are used in the course or furtherance of business, is entitled for input tax credit. Sub-section (19) of Section 2 of the CGST Act states Capital Goods as "the value of which is capitalised in the books of accounts of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business." - In this case, demo vehicles is used for furtherance of supply of such vehicles (such as demo car) as the prospective buyer is subjected to training about the features of the car and how to use them and is also used for driving including the test drives. Application allowed.
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