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Input credit of LFR recovery

Abhay Kumar Singh (Accountant) (31 Points)

15 November 2017

Can a authorised petrol pump dealer take input gst of license fee recovery charge by Petrol & diesel manufacturer in their Invoice whereas petrol & diesel supply is non gst items.

please reply.

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18 Replies

Avinash (JAO) (22 Points)
Replied 09 February 2018

Input tax credit of LFR will not be available, as they are in relation to exempted goods under GST

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priyanka sankar (student) (22 Points)
Replied 28 April 2018

What is license fee recovery.. is there any TDS for that

rakesh sharma (2 Points)
Replied 03 May 2018

I have got LFR bill from iocl. is there any tds liaility.

A.Senthil Subramanian (Tax Consultant) (1658 Points)
Replied 03 May 2018

TDS on License Fees may be deducted @ 10% u/s 194J.

Read more at: https://www.caclubindia.com/forum/income-tax-tds-on-lfr-paid-to-ioc-459874.asp

Chaitanya Monga (Tax Consultant) (60 Points)
Replied 09 May 2018

10% of tds will be deducted on License Fees.

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JITENDRA BANDEKAR (proprietor) (34 Points)
Replied 18 May 2018

Can we have to include details of LFR fees in GSTR3B under ineligible ITC others?

Chaitanya Monga (Tax Consultant) (60 Points)
Replied 18 May 2018

No,you cant show tax under ineligible section

JITENDRA BANDEKAR (proprietor) (34 Points)
Replied 18 May 2018

thanks sir

JITENDRA BANDEKAR (proprietor) (34 Points)
Replied 18 May 2018

then we have to file GSTR3B without LFR and ITC?

Chaitanya Monga (Tax Consultant) (60 Points)
Replied 18 May 2018

Yes,you have to file Gst Returns without LFR and ITC.

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JITENDRA BANDEKAR (proprietor) (34 Points)
Replied 18 May 2018

ok thanks sir

munish (B.Com) (31 Points)
Replied 28 May 2018

No where it define that LFR GST Input we can't take. If u think it related to exempted supply so the input may not taken ( composit supply concept ) than how Petrolium Companies are Charged GST on LFR if it related to exempted supply ?? GST tax is charged at same rate as applicable on Principal Supply. It should not be charged if related to composit supply otherwise a dealer can take ITC benift , I think so. Plz contine if I am wrong and how I wrong ???

Vinay Garg (Practicing) (161 Points)
Replied 06 June 2018

https://www.petroleum.nic.in/sites/default/files/FAQs%20on%20GST.pdf

PLEASE GO THROUGH THIS SIR Q. NO. 32

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munish (B.Com) (31 Points)
Replied 15 June 2018

i already read this sir. In this FAQ its relate to exempted supply only and petrolium products are not exempted, it covered under NON GST SUPPLY. It may be my presumption that it is not required any reversal.

Now lets suppose you have purchased a laptop for your pertol pump than do u think so that you have to reversal ITC on proptionate basis ?

A machinery repair bill raised by service provider do you think u have to reversal ITC on propotionated basis ?