CBIC Circular No. 262/08/2026-GST, dated 27 October 2026, withdraws the earlier clarification that denied input tax credit on demo vehicles held by authorised dealers under the dealer agency model. The circular states that credit on such vehicles is not blocked under Section 17(5)(a) of the CGST Act, 2017. Automobile dealers should review credit previously reversed or not claimed on demo vehicles, subject to the other conditions of the Act.
Omission of Rule 96(10) of the CGST Rules to apply retrospectively, says CBIC
CBIC Circular No. 264/10/2026-GST, issued in October 2026, clarifies that the omission of Rule 96(10) of the CGST Rules, which restricted IGST refunds on…
