GST-ITC on demo cars-eligible- CBIC clarifies
Automobile dealers using demonstration vehicles or demo cars for promoting sales can claim input tax credit (ITC) under the GST law.
Tag: demo vehicle
A Shift in Tax Law: GST Circular Highlights Intent-Based Interpretation
In tax law, the plain reading of provisions is the standard approach. However, the attached recent circular marks a unique shift by clarifying the availability of input tax credit (ITC) for demo vehicles based on the intent of the law.
Circular no. 231/25/2024-GST dated 10.09.2024
CBIC issued Circular no. 231/25/2024-GST dated 10.09.2024 to provide clarification on availability of input tax credit in respect of demo vehicles.
Inter state movement of demo vehicles between distinct persons attracts GST
The Hon’ble Madhya Pradesh High Court in M/s Kia Motors India Pvt. Ltd. v. The State of Madhya Pradesh & Ors. dismissed the writ and held transporting demo vehicle from one state to another between distinct person attracts GST.