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

Freight Forwarding Company Eligible for Input Tax Credit on Tyres, Repairs, and Consumables Under Notification 11/2017-Central Tax. A company involved in Freight Forwarding (GTA) inquired about their eligibility to claim Input Tax Credit (ITC) on purchases such as tyres, consumables, and vehicle repair expenses against their GST liabilities. They charge CGST and SGST at 6% on freight services. Respondents confirmed that the company is eligible to claim ITC on tax paid for inputs, capital goods, and input services used for providing the output service, as per Notification No. 11/2017-Central Tax (rate). It was advised to review the conditions outlined in the notification to ensure compliance.