SERVICE TAX PAID ON FREIGHT OUTWARD

[Kusalava InternationalLimited]

We paid Service tax on Freight Outward(RCM).Can we claim input credit of that Service Tax?Pls clarify with any Notfication/Circular.

AI Summary

Input Credit on Service Tax for Outward Freight Allowed Under GST If Certain Conditions Are Met A company inquired about claiming input credit on service tax paid for outward freight under the GST regime. One respondent confirmed that it is allowed, referencing a Master Circular and a case law involving Ambuja Cements Ltd., which clarified that credit is admissible if the seller retains ownership until delivery, bears transit insurance, and freight charges are included in the excisable goods' value. Another respondent agreed with this interpretation. The company expressed gratitude for the responses, and another participant affirmed the eligibility based on the cited case law.