GST Credit

Save Share

This query is : Resolved

Quick Summary

This discussion explores the eligibility of claiming GST input tax credit (ITC) for tyre retreading services. It clarifies that while ITC may not be available for a GTA (Goods Transport Agency) business, it is generally permissible for a tyre trading unit. The advice suggests that ITC on retreading charges can be claimed and potentially utilised against sales made by the trading business.

sankar ponnan

sankar ponnan (Querist)

09 December 2020 SIR
We are trading of tyres. We have decided to retread some old tyres. Retreading units will issue GST bill on the services provided. Can we avail that GST input credit and utilize it towards the sales?

Plz guide me

Thanks in adv

Lekhraj sood

Lekhraj sood (Expert)

09 December 2020 Yes, you can avail ITC and use it.

sankar ponnan

sankar ponnan (Querist)

10 December 2020 SIR
We have also decided to supply the tyres to our other unit (i.e) GTA - Private Ltd and get the tyres from Pvt Ltd for repairing / retreading works. This is only for availing gst inputs on the retreading charges. In such process, let me know the procedures for Issuing tyres to GTA and get them back for repairs.

Thanks in adv

Lekhraj sood

Lekhraj sood (Expert)

10 December 2020 Sorry , can you describe the transaction with example.

sankar ponnan

sankar ponnan (Querist)

12 December 2020 SIR
Plz see the example----
Mr.A is doing his GTA business (Not Opting 12% GST). Hence, he is not able to avail ITC on purchase of tyres,spares, etc.,
So, he decides to start an additional business (i.e) trading unit.
This is for buying of tyres/spares and sells them to others.
If he do so, then, can he get the eligibility of availing GST ITC on Purchases of both from GTA and trading business.

If yes, can the total credits availed be utilized for sales to be made by the trading unit? Or any reversal of ITC on GTA purchases to be made?

thanks in adv

Lekhraj sood

Lekhraj sood (Expert)

12 December 2020 No,you cannot avail ITC for GTA business but for trading unit-yes.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now