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?

[KASTURI SETHI]

Dear Sir,

A registered person who bears the amount of freight will pay GST on the amount of freight and take credit on the strenth of challan under RCM. This was the scenario in pre-GST era.

[ASHISH SHAH]

If supplier collects tax on freight invoice and same is paid to government, then receiver can get ITC.

[KASTURI SETHI]

In my reply dated 18.4.19 at serial no.1, I want to add the word, 'also'. Pl. read as under:

This was also the scenario in pre-GST era.

[KASTURI SETHI]

Sh. ASHISH SHAH Ji,

Pl. refer to your reply dated 19.4.19 at serial no.2 above. Will you pl. justify your reply by any authority of law ? Thanks.

AI Summary

Input tax credit on freight: recipient may claim ITC if GST on freight is charged and remitted by the supplier.
If the supplier issues a separate invoice for freight, charges GST and remits that tax to the government, the recipient may claim ITC on the freight tax using the supplier's tax invoice. If the recipient bears freight and tax liability arises under the reverse charge mechanism, the recipient must pay GST under RCM and may claim ITC on the basis of documentary evidence such as the transporter challan.