ITC on exempted commodities

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This discussion clarifies whether Input Tax Credit (ITC) can be claimed on services related to exempted commodities, specifically in the context of palm oil plantations. While the imported sprouts themselves are exempt from GST, the CHA (Customs House Agent) services used for their import are considered taxable. Therefore, businesses can claim ITC for these CHA services, even though the goods imported are exempt.

Srinivas

Srinivas (Querist)
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01 January 2022 Dear Sir/Madam
We are running palm oil plantation, manufactures of Crude palm oil and our CHA agent cum Transporter raised CHA Service bill with IGST for Imported Sprouts , which the product is exempted under GST.
Can we eligible to take input for the above case.