TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 548
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....oviding outward taxable GTA service, by way of use as fuel and without which it is not possible to provide taxable output service supply. 3. The applicant has sought a ruling on the following question: "Whether the applicant can pay GST @ 12% under forward charge on GTA services under Notification No. 20/2017-Central Tax (R) dated 22.08.2017 read with Notification No. 13/2017-Central tax (R) dtd. 28.06.2017 and claim full ITC including on bio-diesel fuel." 4. The applicant has submitted their interpretation of law as under: (i) The applicant is undoubtedly a valid GTA and filing periodical GST returns. They also issue necessary LRs for the purpose of undertaking transportation of goods by road and in terms of definition of the term 'GTA' as defined at Section 2(ze), which states that 'goods transport agency' means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. (ii) As per Notification No. 11/2017-CT (R), read with Notification No. 20/2017-CT(R), a GTA can opt to pay GST @ 12% with full ITC benefit. Further, Notification No. 13/2017-CT(R) mandates reverse charge only whe....
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....) has a prohibition qua passenger vehicle or goods/services relating to such passenger vehicles alone (subject to certain relaxation) and goods carriage related ITC never had any prohibition at all. They have also relied upon the following judgement, which hold that fuel used to generate power, when used in production activity, has been allowed as Cenvat Credit and /or VAT ITC: - (a) Sri Kannapiran Mills Ltd.- (2023) 5 Centax 55 Mad (b) Jaypee Rewa Cement Vs Commissioner-2001 (133) ELT 3 (SC) (c) J.K. Udaipur Udyog Ltd Vs Commissioner-2003 (156) ELT A157 (SC) (d) Vikram Cement-2006 (197) ELT 145 (SC) (e) Solaris Chemtech Ltd.- 2007 (214) ELT 481 (SC) Discussion and findings 6. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same, except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 7. We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made both ora....
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.... (GTA) in relation to transportation of goods (including used house hold goods for personal use) supplied by a GTA where,- (a) GTA does not exercise the option to itself pay GST on the services supplied by it; 2.5 The credit of input tax charged on goods and services used in supplying the service has not been taken. [Please refer to Explanation no, (iv)] (b) GTA exercises the option to itself pay GST on services supplied by it. 2.5 (1) In respect of supplies on which GTA pays tax at the rate of 2.5, GTA shall not take credit of input tax charged on goods and services used in supplying the service. [Please refer to Explanation no. (iv)] (2) The option by GTA to itself pay GST on the services supplied by it during a Financial Year shall be exercised by making a declaration in Annexure Von or after the 1st January of the preceding Financial Year but not later than 31st March of the preceding Financial Year: Provided that the option for the Financial Year 2022-2023 shall be exercised on or before the 16th August, 2022: Provided further that invoice for supply of the service charging....
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....f goods supplied by them from the financial year 2023-24 under forward charge. Thus, the applicant being a GTA is eligible to avail ITC as they have opted to pay GST@ 12%(@18% w.e.f. 22. 09.2025) under the forward charge mechanism. 10. The applicant now wants to purchase bio-diesel, which would be used for the operation of trucks and wants to know as to whether they can avail the credit of the input tax charged on bio-diesel. We find that Section 16 of the CGST Act, 2017 lays down the eligibility and conditions for taking input tax credit. As per Section 16(1), every registered person shall, subject to such conditions and restrictions as prescribed, shall be entitled to take credit of the input tax charged on any supply of goods or services or both to him, which are used or intended to be used in the course of furtherance of his business. Section 16(2), (3) and (4) lays down the conditions for availing the Input tax credit, such as the possession of tax invoice, receipt of the goods or services, tax charged in respect of such supply has been actually paid to the Government, furnishing of returns under Section 39, non claiming of depreciation on the tax component under the Income....