Credit of GTA

[PRADEEP KUMAR]

Can we take credit of GTA paid on freight outward?

[manju gupta]

To know whether you can take credit of GTA paid on outward freight, you may visit the latest decision of PUNJAB & HARYANA HC in the case of AMBUJA CEMENTS LTD. TMI ID is 2009 -TMI - 32932 - PUNJAB & HARYANA HIGH COURT

[Madhukar N Hiregange]

The decision of the P&H is relevant to the period befoire the amendment. After the amendment the matter is unclear. It is advisable for the period after amendment 1.3.2008 to avail the credit and reverse under protest and await the judcial development.

[Mukesh Kumar]

The the GTA is related to removal of goods upto the place of removal, service tax paid on GTA is available as credit.

Before the final decision of Larger Bench decision by Tribunal, the decision is given by the Hon.'ble P & H High Court.

AI Summary

Service tax credit availability on GTA for outward freight is contested; consider provisional credit with reversal under protest.
Availability of service tax credit for GTA charges on outward freight is contested: a High Court decision supports credit for the pre-amendment period, but a later amendment created uncertainty for the post-amendment period. Practitioners advise availing credit and reversing it under protest for affected periods while awaiting larger-bench or subsequent judicial clarification; an alternative view treats GTA for removal up to the place of removal as qualifying for input credit.