GST Council to issue Clarification Soon on ITC Availability on Demo Cars for Dealers of Vehicle Manufacturers

The GST Council is set to issue a clarification regarding the availability of Input Tax Credit (ITC) on demo cars provided to dealers by vehicle manufacturers. This clarification will address the eligibility criteria and procedural aspects related to claiming ITC on demo vehicles, which has been a point of confusion for dealers. The guidance will help ensure that dealers can properly claim ITC while complying with GST regulations. The clarification is expected to streamline processes and reduce uncertainties associated with the treatment of demo cars under GST, ultimately supporting the automotive sector's compliance efforts.