TaxTMI 
TaxTMI 
Dear Sir,
Good afternoon
Could any please give opinion that the gta paid on freight outwards is eligible for ITC credit. If eligible under which rule it is eligible.
Thanks & REgards,
S.Ramakrishnan
gst credit on freight outward
09 Oct 2017 
2 Replies 
8000 Views Asked by
Input tax credit on freight: FOR composite supply permits buyer ITC; where GTA is billed to buyer, RCM applies.
Where goods are supplied on a FOR composite basis, transportation is included in the supplier's consideration: the supplier pays GST on the goods on forward charge and the buyer may claim input tax credit if eligible; the supplier pays tax on freight charged by the GTA under reverse charge and can take credit. Under ex works where the GTA bills the buyer, the buyer pays reverse charge on the GTA service and may claim credit, while the supplier charges tax on the goods on forward charge and the buyer may claim input tax credit if eligible. (AI Summary)
Where goods are supplied on a FOR composite basis, transportation is included in the supplier's consideration: the supplier pays GST on the goods on forward charge and the buyer may claim input tax credit if eligible; the supplier pays tax on freight charged by the GTA under reverse charge and can take credit. Under ex works where the GTA bills the buyer, the buyer pays reverse charge on the GTA service and may claim credit, while the supplier charges tax on the goods on forward charge and the buyer may claim input tax credit if eligible. (AI Summary)