Cenvat credit on gta

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This query is : Resolved

Dhwaj Singhania (Querist)

06 January 2015 We are manufacturer and paying excise duty. We also availing GTA service for inward and outward transport and making service tax payment after abatement.

Kindly intimate us whether we will get input tax credit of the above service tax payment after 01.07.2012?

Regards
Dhwaj Singhania

CA Kumar Mukesh

CA Kumar Mukesh (Expert)

07 January 2015 Yes you can claim GTA services as Input Service under rule 2(I) of Cenvat Credit rules 2004. If such services are used or have any relation with manufacturing of exciseable goods. But GTA first need to be paid in cash.

On Inward GTA there is no restriction for availing GTA i.e. all STA Input service can be claimed.

However on outward GTA, credit can be taken upto the place of removal (Section 4(3)(c) of Certral Excise Act) i.e if place of removal is factory then GTA paid on outward freight outward freight will not eligible

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