🔥ITC Benefit on Motor Vehicles Allowed | New GST Circular 231 & 262 | GST Latest Update |

🔥ITC Benefit on Motor Vehicles | New GST Circular 231 & 262 | GST Latest Update | ITC allowed | GST Circular 262 Explained | ITC on Demo Cars | GST Input Tax Credit on Motor Vehicles The latest GST update regarding Input Tax Credit (ITC) on demo cars is important for car dealers, automobile dealerships, tax professionals, CAs, accountants and GST practitioners. In this video, CA Shweta Verma explains GST Circular No. 262/08/2026-GST dated 26 October 2026, which clarifies the admissibility of Input Tax Credit on demo vehicles purchased by authorised dealers under the dealer-agency model. The video explains the background of Circular No. 231/25/2024-GST dated 10 September 2024, the earlier clarification regarding ITC on demo cars, and the subsequent withdrawal of paragraph 4.6 through Circular 262. Topics covered in this video: Latest GST Circular 262 explained in simple language ITC on demo cars and test-drive vehicles Input Tax Credit on motor vehicles under GST Section 17(5)(a) of the CGST Act Section 16 of the CGST Act and ITC eligibility conditions Traditional dealership model vs dealer-agency model Why Circular 231 denied ITC in the dealer-agency model What changed after GST Circular 262? ITC eligibility for authorised car dealers GST treatment of demo vehicles shown as capital assets Sale of demo cars after use and relevant GST provisions Important GST provisions for automobile dealers and tax professionals Key takeaway: Circular 262 withdraws paragraph 4.6 of Circular 231 and clarifies that ITC on demo vehicles in the dealer-agency model is not blocked under Section 17(5)(a), subject to fulfilment of the applicable conditions under the GST law. This video is useful for Chartered Accountants (CAs), GST practitioners, tax consultants, accountants, automobile dealers, car showroom owners, finance professionals and students who want to understand GST provisions and recent circulars. Watch the complete video to understand the legal background, the difference between the two dealership models and the practical impact of GST Circular 262. Disclaimer: This video is for educational and informational purposes only. ITC eligibility depends on the facts of each case and compliance with the applicable provisions of the CGST Act and Rules. Please refer to the relevant GST circular and legislation before taking any tax position. Subscribe to CA Shweta Verma for updates and easy explanations on GST, Income Tax, TDS, tax planning, compliance and the latest taxation developments. ━━━━━━━━━━━━━━━━━━━━ 📲 Join the Official Telegram Channel 👉 https://t.me/cashwetaverma 💼 PROFESSIONAL SERVICES WhatsApp Only: 81305 73445 (⚠️Only for paid professional services) 📧 Email: cashwetav0893@gmail.com ━━━━━━━━━━━━━━━━━━━━ #GST #GSTCircular262 #ITCOnDemoCars #InputTaxCredit #GSTUpdate #CGSTAct #Section175 #Circular231 #CarDealership #GSTIndia #CAShwetaVerma GST Circular 262, GST Circular 262 explained, Circular 262/08/2026-GST, ITC on demo cars, ITC on demo vehicles, input tax credit on motor vehicles, GST on demo cars, GST on test drive cars, Section 17(5)(a) CGST Act, Section 17(5) GST, Circular 231 GST, Circular 231/25/2024-GST, dealer agency model GST, traditional dealership model, ITC on motor vehicles GST, GST latest update 2026, latest GST circular, GST update India, authorised car dealer GST, automobile dealership GST, GST capital goods, sale of demo cars GST, CGST Act ITC provisions, GST explained in Hindi, GST explained in Hinglish, CA Shweta Verma GST, Goods and services tax, GST news, GST latest updates, GST circulars, GST notifications, GST update today, GST Act, GST rules, GST amendments, GSt news India, GST explained in Hindi, GST full course, GST for beginners, GST compliances, GST for business, GST latest news 2026, GST registration, GST registration limits, GSTIN,, GST new rules, GST registration documents, GST return filing, GSTR-1, GSTR-3B, GST return due date, QRMP scheme, GST ITC, Input tax credit in GST, ITC eligibility, blocked ITC, ITC reversal, ITC rules, ITC expenses, ITC on motor vehicles, ITC mismatch, GSTR-2B vs purchase register, GST invoice rules, E-way bill, HSN code, SAC code, Credit note under GST, Debit note under GST, GST invoice format, RCM under GST, composite supply, mixed supply, GST on scrap, GST on goods transfer, GST on e-commerce, GST on agency comission, GST clarification, CGST act explained, GST council meeting, GST new rules, GST rates, Refund of unutilised ITC, NIl rated supply, Zero rated supply, Exempt supply, Supply under GST, GST notice, GST notice reply, GST penalty, GST audit, GST appeal, GST adjudication,