ITC ON TAX PAID THROUGH RCM ON NON GST GOODS

[Renju Joy]

Is credit available on freight paid on Reverse Charge basis on transportation of petroleum product?

AI Summary

Debate on ITC Eligibility for GST Paid via RCM on Transporting Petroleum Used in Manufacturing Taxable Goods. A discussion on the applicability of Input Tax Credit (ITC) on GST paid through Reverse Charge Mechanism (RCM) for the transportation of petroleum products, which are non-GST goods. Participants debated whether ITC is available when petroleum products are used in manufacturing taxable goods. Generally, it was agreed that ITC is not available for non-GST goods. However, if these goods are used in manufacturing taxable supplies, ITC on GST paid under RCM for transportation may be claimed. The discussion also highlighted the complexity of determining ITC eligibility based on the nature of the goods and business activities.