Karnataka AAR Clarifies ITC Eligibility on Ancillary Expenses for Used Car Dealers Availing Notification No. 08/2018-CGST (Rate)
The Karnataka Authority for Advance Ruling has held that dealers availing the margin scheme under Notification No. 08/2018-CGST (Rate) are eligible to claim input tax credit on goods and services other than the purchase of used vehicles, provided all statutory conditions are met. The restriction on ITC applies only to the vehicles themselves, not to ancillary business expenses.
