Quick Summary
On Wednesday, the Union Finance Ministry issued several circulars, providing much-needed relief to various sectors, including the automotive industry, data hosting services, advertising agencies catering to foreign clients, and exporters. One of the key circulars from the Central Board of Indirect Taxes and Customs (CBIC) clarified the GST treatment of demo vehicles used by authorized dealers. These vehicles, despite being capitalized in accounts, are eligible for GST deductions as they help pr
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FAQ :
Advertising agencies providing services to foreign clients will likely have these services treated as exports, exempting them from GST.
The GST treatment of demo vehicles used by authorized dealers has been clarified. These vehicles are now eligible for GST deductions as they aid in promoting sales through trial runs and demonstrations.
Yes, under certain conditions, data hosting services provided by Indian firms to foreign cloud computing service providers now qualify as exports and are exempt from GST.
Exporters may still be eligible for IGST refunds on exports made with payment of integrated tax, even if inputs were initially imported under customs benefits.
Demo vehicles are considered tools for making further supplies as they are used for test drives and feature displays, which enhance sales and thus qualify for GST input credit.
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