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)
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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