Goods and Service TaxArticle·28 October 2026

CBIC Circular No. 262/08/2026-GST permits GST ITC on Demo Vehicles Under Dealer-Agency Model

By J the App

Executive Summary

Circular No. 262/08/2026-GST reverses the earlier position under Circular No. 231/25/2024-GST. ITC on demo vehicles is not blocked under Section 17(5)(a) merely because the authorised dealer operates under a dealer-agency model in which the OEM sells vehicles directly to customers.

Domain | IDT | GST

The Position

Section 17(5)(a)(A) of t...

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