INPUT on Demo Vehicle

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.

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

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..

Whether this demo Vehicle to show as stock or fixed assets

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).

Whether this Demo Vehicle to show as stock or fixed assets

In my view should be shown as Fixed Assets.

If demo vehicles are held for further supply then you can take credit. IF DEMO VEHICLES ARE NOT FURTHER SUPPLY THEN YOU CAN NOT Avail

Hi Sirs,

Its Clear about the Input Tax Credit on Purchases that ITC can be avail.

We have to Invoice the demo vehicles for RTO Registration. How can I deal with GST on this Invoice .