ITC ON TRUCK LORRY FOR TRANSPORTATION OF DIESEL

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This query is : Resolved

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A BPCL petrol pump owner, who has purchased a tanker to transport diesel and petrol, is asking if they can claim the GST input tax credit (ITC) paid on the tanker's purchase. The consensus is yes, as the tanker is an input for outward supply (transportation of goods) and ITC is allowed on motor vehicles used for transporting goods, including diesel.

RAMDEVA RAM JYANI

RAMDEVA RAM JYANI (Querist)
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29 August 2020 Dear Sir,
i have petrol pump of BPCL and BPCL delever diesel and petrol at our pump (outlate) through transportar, but i purchase a tankar and contract with bpcl for transportation of petrol & diesel .
now I pay GST on purchase on tankar and charge gst on transportation service to bpcl,
can i claim GST input of gst paid on purchase of tankar?
thanks

Piyush Verma

Piyush Verma (Expert)
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29 August 2020 Tankers are used as inputs for your outwards supplies i.e. transportation of diesel, hence there is no bar in taking the ITC on tankers

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Lekhraj sood

Lekhraj sood (Expert)
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30 August 2020 Yes you can claim ITC on the purchase of Tanker because ITC is allowed on motor vehicle for transportation of goods.And Diesel is covered in the definition of goods under GST.
“Goods’’ means every kind of movable property other than money and securities but includes actionable claims ,growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.

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