Claim of ITC paid on detention Charges

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You've asked whether Input Tax Credit (ITC) can be claimed on GST paid for detention charges incurred during the import of goods. Unfortunately, under Section 17(5) of the CGST Act, 2017, the GST paid on detention, seizure, or release of goods/vehicles during transit is expressly disallowed as ITC. This means these charges are considered 'blocked credits', even if they arise from procedural issues. Therefore, while you've paid GST on these costs, you cannot claim it back as ITC and should treat them as non-deductible business expenses.

Akhil Garg

Akhil Garg (Querist)
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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?

RAJA P M

RAJA P M (Expert)
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09 May 2024 Yes, Why not...?? You can claim ITC for the detention charges if GST ITC provisions fulfill.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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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
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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
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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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