ITC on loading, unloading and port charges for inland waterway transportation service

[Debtosh Dey]

i understand loading & unloading are parts of transportation as decided by various Courts. Also, Customs valuation rules include inland waterway transportation as part of freight. Further, GST law on pure agency requires all incidental services to be included in the main service (inland waterway transportation).

Please let me know if ITC can be availed against loading & unloading of barge and Port charges (dock toll, barge stayal & royalty charges) for inland waterway transportation service which is exempted and billed as such in bill of supply.

Will it make any difference if the loading, unloading & Port charges are separately billed with GST?

[Alkesh Jani]

Shri

Please give a though for composite or mixed supply.

Thanks

AI Summary

Input tax credit for loading, unloading and port charges depends on whether they form part of exempt inland waterway transport. ITC on loading, unloading and port charges tied to inland waterway transportation is generally unavailable where those charges are integral to an exempt inland waterway transport service; if such charges are separately characterised and invoiced as a distinct taxable supply or a taxable component within a composite/mixed supply, ITC may be available, requiring review of invoicing, contractual allocation and supply characterisation.