ITC on GTA paid for outward transportation

[GOPAL CHOWDHURY]

Dear Experts,

As under GST, GTA will be payable under reverse charge and forward charge notification was provided in that respect.

It was further clarified that ITC will be available for the RCM paid under reverse charge under section 9(3) of the CGST Act, 2017 and not on the forward charge.

in this regard I want to know, can a manufacturing company avail ITC on the GTA paid by them for outward transportation.

As under erstwhile law ITC on outward transportation is not allowed.

kindly let me know.

AI Summary

Input tax credit on GTA services may be claimed by the payer despite outward supply unless exclusions apply.
Whether a manufacturer may claim input tax credit on GTA services for outward transportation hinges on who pays the freight and the charge mechanism: where GTA tax is paid under reverse charge the recipient who pays can claim ITC, subject to the requirement that the supply is for business or furtherance of business; the statutory exclusion referenced by the querist pertains to specific services and does not generally bar ITC for GTA, and no definitive administrative clarification had been provided in the discussion.