The Madhya Pradesh Authority of Advance Ruling (AAR) ruled that no Input Tax Credit (ITC) is possible on demo vehicles open in the business improvement and for the constant performance of the companies
The petitioner is the owner of Khatwani Sale and Service LLP is an authorised dealer of KIA for sales & services of vehicles. Through the supplier the petitioner has buyed the vehicles with respect to the tax invoices 
Know all the important details regarding revise tax invoice under GST. Also, we have added the major difference between a debit note and credit note, post paying tax and taken advantage of the demo vehicles in his account records.
The petitioner seeks to advance the ruling on the problem that even if the input tax credit upon demo vehicle buyed can be claimed as it will take benefit in account records. The petitioner has provided that the firm will not avail depreciation upon the tax on the demo vehicles that are to be advantaged in the account records.
Under the GST no charging depreciation upon the tax component is according to the other related procurement seen by AAR. but there will be no influence to the applicability under section 17(5)(a) of the GST Act as to which the petitioner is not liable for the input tax credit (ITC) 
A complete guide for understanding the basics of input tax credit and it calculation with detailed examples under GST (Goods and Services Tax) India on the demo vehicles.
The two judges namely Manoj Kumar Choubey and Virendra Kumar Jain on hearing said that the petitioner is not liable for the input tax credit on the demo vehicles buyed for the promotion of the business in context to the procurement of the clause (a) of sub-section (5) of Section 17 of GST Act, 2017 as they are not covered through any of the special case furnished inside the clause (A), (B) or (C) of Section 17(5) (a) which is for the supply of these vehicles in upcoming time so for the passenger transportation as well as for imparting driving training.
