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INPUT on Demo Vehicle

Amit Jain (Proprietor ) (537 Points)

26 October 2019

Can we claim input on Demo Bike kept in Showroom

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9 Replies

Ajay Gupta (PRACTICING CHARTERED ACCOUNTANT) (196 Points)
Replied 26 October 2019

In A. M. Motors (2018) 18 GSTL 93 (AAR, Kerala), the assessee sought for advance ruling on whether input tax credit on the motor car purchased for demonstration purpose of the customer can be availed as credit on capital goods and set off against output tax payable under GST in the case of a motor car dealer.The Authority for Advance Ruling ruled that input tax paid by a vehicle dealer on the purchase of motor car used for demonstration purpose of the customer can be availed as input tax credit on capital goods and set off against output tax payable under GST.

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 26 October 2019

Yes can avail ITC on demo car.
It's being used in course & furtherance of Business

Hardik (Professional) (918 Points)
Replied 26 October 2019

Yes, if it is used in the course or furtherance of business and fulfills the conditions mentioned under section 16(2) you can take input tax credit..

Amit Jain (Proprietor ) (537 Points)
Replied 26 October 2019

Whether this demo Vehicle to show as stock or fixed assets

subhagan sreerangam (7054 Points)
Replied 27 October 2019

You can avail the ITC on Demo Car ,if it is used in the course of business purpose or furtherance of business and also fullfills the all conditions mentioned U/s 16(2).