Input Tax Credit allowable for the goods used in trial run of production/ demonstration

In this matter the Authority for Advance Rulings, Kerala held 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.

To read complete Judgment 2018 Taxo.online 605

Similar decision is taken in the matter of:

• Chowgule Industries (P) Ltd. [ARA-18/2019-20/B-121 (A.A.R. – GST – Maharashtra)]. To read the complete judgment 2019 Taxo.online 961
• M/s Khatwani Sales and Services L.L.P. [Order No. 13/2020 dated 23.07.2020 (A.A.R. – GST – Madhya Pradesh). To read the complete judgment 2020 Taxo.online 1053
• M/s Platinum Motocorp L.L.P. [ADVANCE RULING NO. HAR/HAAR/R/2018-19/40 dated 01.03.2019 (A.A.R. – GST – Haryana)]. To read the complete judgment 2019 Taxo.online 960