GST: The CBIC has clarified that ITC on demo vehicles used for test drives is allowed under both dealership models, (the dealer-agency model & traditional dealership model), as they both promote further sales of similar vehicles. The earlier restrictive clarification is withdrawn.(27.10.2026)

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GST:

The CBIC has clarified that ITC on demo vehicles used for test drives is allowed under both dealership models, (the dealer-agency model & traditional dealership model), as they both promote further sales of similar vehicles. The earlier restrictive clarification is withdrawn.

[Circular No. 261/10/2026-GST dated 26.10.2026]