watch_later 17/01/18

Dear Sir,

We are vehicle dealers If we buy a vehicles for office use as demo vehicles GST input is applicable ?

1 Response | Latest response: 17/01/18 | Sort by Likes(thumb_up) Recent | GST Reply
watch_later 17/01/18

Reading the section 17(5)

(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:—
              (a) motor vehicles and other conveyances except when they are used––
                   (i) for making the following taxable supplies, namely:—
                      (A) further supply of such vehicles or conveyances ; or
                      (B) transportation of passengers; or
                      (C) imparting training on driving, flying, navigating such vehicles or conveyances;
                 (ii) for transportation of goods;

In your case you are a dealer in motor vehicles and you purchase for the furtherance of your business.

Even the vehicle purchased for demo purchase can be classified as purchased for training as Demo vehicle is used for training purpose.


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