gta credit

[Ramakrishnan Seshadri]

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

AI Summary

Input tax credit eligibility for intermediary services: manufacturers may claim credit for GST charged by intermediary when compliance conditions met.
Input tax credit is available on GST charged by an intermediary who pays GTA invoices and invoices the purchaser for transport and agency services, provided the intermediary is registered, discharges the tax on his invoice, files correct GST returns, and the invoice details uploaded by the supplier match the purchaser's records; payments to the GTA are creditable to the intermediary, not the purchaser.