ITC eligible on purchases (tyre, consumables & labour bills) of GTA

[gvenugopal g]

Hi All,

Our Company engaged in Freight Forwarding (GTA) and we are charging our customers CGST @6% and SGST @6% on freight charges. We are paying the entire GST collection without adjusting ITC (on our purchase & labour bills).

Kindly clarify whether we (GTA) are eligible to take ITC (GST) on our purchase made by us for tyres, consumables and GST paid on vehicle repairing and body building etc. whether this ITC can be adjusted against our GST liabilities?

[Rajagopalan Ranganathan]

Sir,

Since you are paying CGST @ 6% and SCGST @ 6% you are eligible to avail ITC of tax paid on inputs, capital goods and input services utilised for supplying the output service vide Sl. No. 11 of Notification No. 11/2017-Central Tax (rate) dated 28.6.2017 as amended.

[Himansu Sekhar]

Yes you can take the credit.But go through the conditions mentioned in the notification.

[KASTURI SETHI]

I support the views of both experts.

AI Summary

Input tax credit eligibility for transportation services affirmed; credit available on tyres, consumables and repair costs subject to notification conditions. Purchases such as tyres, consumables and services for vehicle repair and body building, and related labour, qualify as inputs or input services for supplying GTA services and are eligible for input tax credit subject to the conditions in Sl. No. 11 of Notification No. 11/2017 Central Tax (Rate) (as amended); eligible credit may be set off against GST liability in accordance with prescribed rules.