{"id":4844,"date":"2026-03-08T20:17:37","date_gmt":"2026-03-08T20:17:37","guid":{"rendered":"https:\/\/bhatiabhola.com\/?p=4844"},"modified":"2026-03-08T20:17:38","modified_gmt":"2026-03-08T20:17:38","slug":"gst-aar-karnataka-ruling-dated-12-02-2026-used-car-dealer-can-claim-itc-on-business-expenses-as-itc-restriction-applies-only-to-vehicles","status":"publish","type":"post","link":"https:\/\/bhatiabhola.com\/index.php\/blog\/2026\/03\/08\/gst-aar-karnataka-ruling-dated-12-02-2026-used-car-dealer-can-claim-itc-on-business-expenses-as-itc-restriction-applies-only-to-vehicles\/","title":{"rendered":"GST, AAR Karnataka Ruling Dated 12\/02\/2026 – Used Car dealer can claim ITC on Business Expenses as ITC Restriction applies only to Vehicles"},"content":{"rendered":"\n

Case of Toyota Mobility Solution and Services India Pvt Ltd, AAR Karnataka Ruling Dated 12th<\/sup>\u00a0February 2026.<\/em>The applicant purchases used passenger vehicles, undertakes minor refurbishment and repairs, and subsequently sells the vehicles to end customers. The company incurs various ancillary expenses in the course of its operations, which include refurbishment charges, marketing and advertisement expenses, professional fees, manpower expenses, office expenses etc.\u00a0<\/p>\n\n\n\n

— The applicant sought an advance ruling on whether input tax credit (ITC) can be availed on goods and services other than the purchase of used vehicles when the company avails the benefit of Notification 08\/2018- Rate dated 25th<\/sup> January 2018. (Under this notification, GST on the sale of used motor vehicles is payable on the margin between the selling price and purchase price, generally at the rate of 18%). AAR ruled that the applicant is eligible to avail input tax credit on such goods and services other than the purchase of used motor vehicles. <\/p>\n\n\n\n

(Link: AAR Karnataka Ruling Dated 12\/02\/2026)<\/em><\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Case of Toyota Mobility Solution and Services India Pvt Ltd, AAR Karnataka Ruling Dated 12th\u00a0February 2026.The applicant purchases used passenger […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"enabled":false},"version":2}},"categories":[30,6],"tags":[],"class_list":["post-4844","post","type-post","status-publish","format-standard","hentry","category-aar-ruling","category-gst"],"yoast_head":"\nGST, AAR Karnataka Ruling Dated 12\/02\/2026 - 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