ITC refund in case of Transporter

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This query is : Resolved

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This discussion explores whether a transporter, registered under GTA and paying 5% GST, is eligible for a refund of Input Tax Credit (ITC) on purchases like tyres and parts. The consensus is that if ITC is blocked under Section 17(2) of the CGST Act and cannot be availed, then a refund of that ITC does not arise. Refunds are generally permitted only for specific cases like deemed exports or non-resident taxable persons, as per Section 54.

Prem Chandra Thakur

Prem Chandra Thakur (Querist)
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10 October 2020 Dear Sir,
Transporter is registered under GTA @5% GST payable by Service Recipient.
Transporter can not claim the ITC on purchase of Tyre & thier parts.
Can the Transporter be eligible to take the refund against ITC purchase on it.
Kindly guide us and oblige.
Thanks & Regards,
Prem Chandra Thakur

Lekhraj sood

Lekhraj sood (Expert)
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10 October 2020 No , GTA in such a case is not eligible for any ITC or input tax refund.

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Prem Chandra Thakur

Prem Chandra Thakur (Querist)
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10 October 2020 ITC input is blocked under sec 17(2) CGST ACT 2017
but in case of refund kindly refer the proper section.
Thanks

Lekhraj sood

Lekhraj sood (Expert)
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10 October 2020 Refund is of ITC , so if no ITC no refund.
Refund of input tax is allowed only for deemed exports or Non-resident taxable persons.See section 54

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Prem Chandra Thakur

Prem Chandra Thakur (Querist)
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10 October 2020 Thank you very much

Lekhraj sood

Lekhraj sood (Expert)
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10 October 2020 If you are satisfied with the reply , press like

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