ITC availavility

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This discussion addresses whether Input Tax Credit (ITC) can be claimed on GST and penalties paid due to an RTO officer's assessment. Experts clarify that while ITC on the GST amount itself may be claimable if eligible, ITC on any penalties paid, even if the goods weren't seized, is generally not permissible.

piyush

piyush (Querist)
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17 March 2020 Dear Professionals,
My company paid GST as the vehicle was captured by RTO officer. The company paid GST alongwith 100% penalty.
Please suggest can i claim the amount of ITC on
1. GST paid
2. Penalty paid on GST.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 March 2020 1 ITC can be claimed if eligible.
2 No ITC can be claimed on penalty.

Spurto Consultancy Services

Spurto Consultancy Services (Expert)
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17 March 2020 Yes, you can claim ITC of the GST paid on goods, if eligible.
Penalty paid at the time of seizure of goods cannot be claimed.

piyush

piyush (Querist)
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17 March 2020 Sir Goods was not seized but due to some mistake in applying E-way bill provision this penalty was imposed along with GST. Please give your opinion.

Spurto Consultancy Services

Spurto Consultancy Services (Expert)
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17 March 2020 Even if the goods were not seized and penalty was paid for other reasons as mentioned, you cannot claim ITC of the penalty.

piyush

piyush (Querist)
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17 March 2020 Thanks to all for your suggestions

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 March 2020 Welcome..............

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