INPUT CREDIT OF GST ON GOODS TRANSPORT VEHICLE

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If your business supplies goods and transportation is an integral part of that supply, you can generally claim input tax credit (ITC) on GST paid for purchasing trucks. This applies even if freight charges are included in the overall price of the goods, as long as the vehicle is used for transporting those goods. ITC on trucks used for business purposes typically doesn't fall under the disallowed credits listed in Section 17 of the CGST Act.

Hemkumar

Hemkumar

(Querist)

01 April 2020 Person engaged in the business of trading of lignite and transportation work income. He is quoting "FOR" rates to his customers to his customer which includes freight charges also , whether he can take input credit of GST paid on purchase of trucks ?? (HE IS NOT CHARGING SEPARATELY IN BILLS FOR TRANSPORTATION CHARGES RATES OF MATERIAL ARE INCLUSIVE OF FREIGHT AMOUNT)

RAJA P M

RAJA P M (Expert)

01 April 2020 The said vehicle used in transportation of goods then You can avail ITC for the purchase of Truck... refer sec 17(5) of CGST act...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

01 April 2020 Yes he can take input credit of GST paid on purchase of trucks as it's used for transportation of goods.

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CA Suresh Jain

CA Suresh Jain (Expert)

02 April 2020 Yes, ITC can be availed as the person is engaged in supply where service of transport is an integral part of contract for supply of goods. The supplier of goods is paying GST on the price of lignite including transport charges. Moreover, ITC on trucks does not fall under disallowed credit u/s. 17 of CGST Act.
https://www.caclubindia.com/articles/itc-in-respect-of-motor-vehicles-40880.asp

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