PLEASE CONFIRM OUTWARD SUPPLY THROUGH CARGO ABLE TO CLAIM ITC

[nandankumar roy]

PLEASE CONFIRM OUTWARD SUPPLY OF OUR MFG UNIT GOING THROUGH BLUE DART CARGO AND CHARGING GST 18% CAN WE ARE ABLE TO CLAIM IN ITC.PL CONFIRM AND 2ND POINT IN CASE OF UNREGISTERED SUPPLIED PARTY RCM TO BE SHOWN UNDER 9(4) AND GST CAN BE SHOWN IGST INSTEAD OF CGST AND SGST .PL CONFIRM.REGARDS ROY

[Rajagopalan Ranganathan]

Sir,

You cannot avail ITC in respect of outward supply of your manufactured goods. Only the buyer of your manufactured goods can avail the credit if he pays GST as consignee.

If the unregistered supplier is from other state then you have to pay IGST on reverse charge basis as per section 5 (4) of IGST Act, 2017. If the unregistered supplier is from the same state you have to pay CGST and SGST under reverse charge.

[KIRTIKUMAR PUROHIT]

Mr. Roy; I thiinck your query is unclear, but what I understand accordingly my reply is if it is goods than "NO" and if you send Input or Raw Material for further process to your another unit than "YES"

[nandankumar roy]

ONLY QUESTION ANY OUTWARD FREIGHT IN FORM OF TRNSPORT OR CARGO (WHERE IN CARGO LIKE BLUE DART , BILL CHARGING 18% GST) SO PLEASE CLEAR WHETHER CARGO CHARGED 18% GST ,CAN BE TAKEN IN ITC AND ALSO SAY IF NOT PERMISSIBLE TO FREIGHT THEN FURTHER 5 % CHARGE TO BE SHOWN IN RCM WITH 5% EXTRA AS APPLICABLE TO GTA SERVICE PROVIDER.

[SHIVKUMAR SHARMA]

You can Claim ITC on above service because the blue dart cargo is provided Courier service & they are not coming under the GTA service .

AI Summary

Input tax credit on courier services may be claimable; GST on outward goods available to buyer, not supplier. Whether GST on cargo/courier charges for outward movement qualifies as input tax credit and how reverse charge applies where supplier is unregistered. The supplier of manufactured goods cannot claim credit for tax on the outward supply of goods; the buyer who pays tax as consignee may claim it. Freight or courier service charges by an organized courier are characterized as a service that may be eligible for input tax credit. For unregistered suppliers, reverse charge applies: inter-state unregistered supplies attract IGST under reverse charge, while intra-state unregistered supplies attract CGST and SGST under reverse charge.