Accounting in gst for demo motor vehicles

Accounts 602 views 3 replies

What should be the accounting of a motor vehicle if it is received by the authorised dealer as a demo vehicle from the manufacturer specifically only to be used as a demo to the customers for test driving. whether its ITC can be claimed under GST or not? Also what will it be qualified as? Whether it is a asset or anything else/

 

Replies (3)
As the demo car is used for furtherance of business, and the registere,d person is in the business of selling cars it is eligible for itc . It will be treated as an asset
please refer link below

https://www.indiafilings.com/learn/input-tax-credit-on-motor-vehicle/
Yes , Agree with Pep Consultancy
ITC can be claim & book as Asset in uour books of account


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