GTA Services

[Kaustubh Karandikar]

Supplier had issued two separate invoices viz. one for supply of goods and another for supply of service i.e. freight charges which he had initially paid to the transporter and recovered from the receiver of the goods. Can the receiver of the goods take credit against service invoice towards freight charges issued by the supplier?

AI Summary

Can a receiver claim input tax credit on separately invoiced freight charges under GST? Legal insights discussed. A discussion on a forum about Goods and Services Tax (GST) addressed whether a receiver of goods can claim input tax credit (ITC) on freight charges invoiced separately by the supplier. One participant explained that under the reverse charge mechanism (RCM), the receiver could claim credit if they bear the freight cost and pay GST on it. Another participant stated that if the supplier collects and pays tax on the freight invoice, the receiver can claim ITC. A request was made for legal justification of this claim.