Claim of ITC paid on detention Charges
This query is : Resolved
09 May 2024
We paid detention charges on import of goods. So can we claim ITC of such Gst paid in detention charges. please help with relevant section?
09 May 2024
Yes, Why not...?? You can claim ITC for the detention charges if GST ITC provisions fulfill.
15 August 2025
Under GST law, ITC is expressly disallowed on taxes paid due to detention, seizure, or release of goods/vehicles during transit—as per Section 17(5) of the CGST Act, 2017
gsthero.com
.
Although detention charges may look like business expenses or supply-based services, the legal provision is clear: the tax paid on such charges cannot be claimed as ITC.
Why? Because Section 17(5) classifies these as blocked credits, even if procedural in nature (e.g., delay, documentation error, e-way bill non-compliance)
Swipe
Tax Management India
gsthero.com
.
Practical Tip: These costs—even though GST-paid—should be treated as nondeductible business expenses from an ITC perspective. Reflect them cautiously in financials and budget for the GST cost accordingly.
gsthero.com
.
Although detention charges may look like business expenses or supply-based services, the legal provision is clear: the tax paid on such charges cannot be claimed as ITC.
Why? Because Section 17(5) classifies these as blocked credits, even if procedural in nature (e.g., delay, documentation error, e-way bill non-compliance)
Swipe
Tax Management India
gsthero.com
.
Practical Tip: These costs—even though GST-paid—should be treated as nondeductible business expenses from an ITC perspective. Reflect them cautiously in financials and budget for the GST cost accordingly.
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