Cenvat credit on GTA

[chaganti srinivas]

Dear Sirs, We are taking cenvat credit on GTA since our terms of delivery is customer godown location. But at the same time our customer is paying some consolidated amount towards freight charges. However, freight we receive is less than what we pay acutally to the transporters. In this circumastances, am i eligible for taking the credit on GTA?.

AI Summary

Cenvat Credit Not Claimable on Outward GTA Services Beyond Place of Removal, Even with Customer Reimbursement A query was raised regarding the eligibility to claim Cenvat credit on Goods Transport Agency (GTA) services when the terms of delivery are to the customer's location. The issue highlighted that the customer reimburses a portion of the freight charges, which is less than the actual cost paid to transporters. The response clarified that Cenvat credit cannot be claimed on outward transportation beyond the place of removal, regardless of any reimbursement received from the customer.