Claim of ITC paid on detention Charges

This query is : Resolved

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.

Asha Kanta Sharma

Asha Kanta 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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