Dear Sir,
We are manufacturers of automobile parts supplying to OEM. The finished goods are supplied to them through transport agency.
We have an understanding with an intermediate service provider who will recieve the transport agency invoices in his name with gst 5% and he will pay to the transport agency and gst to the government.
After that he will raise invoice on us for this transport service along with his service and claim gst.
Now our question is whether gst paid and claimed by the intermediate service provider is eligible for gst credit by us
Please clarify experts
Thanks & Regards,
S.Ramakrishnan
Manufacturer Can Claim GST Credit on Intermediary Services for Transport Invoices if Conditions Met Under CGST Act A manufacturer of automobile parts inquired about the eligibility of claiming GST credit on services provided by an intermediary who handles transport invoices. The intermediary receives transport invoices, pays GST, and then invoices the manufacturer, including his service fee. Experts in the forum confirmed that GST credit is eligible, provided the intermediary files accurate GST returns, and the invoices match the manufacturer's records. The intermediary must be registered under the CGST Act, and the manufacturer can claim credit for payments made to the intermediary, including transport services. (AI Summary)