If ITC on expenses related to non gst item then can we claim it aganist sales of gst taxable item.
Replies (5)
Quick Summary
This discussion explores the eligibility of claiming Goods and Services Tax (GST) Input Tax Credit (ITC) when expenses are related to non-GST applicable items. Specifically, it addresses whether ITC on freight charges, when these charges are added to invoices for non-GST items like diesel and petrol, can be claimed against the sale of GST-taxable items such as oils. The general consensus is that if GST is not applicable to the primary item or the freight service itself, then ITC cannot be claimed.
My client is a owner of petrol pump and freight charged on invoice of diesel and petrol and also deals in oils which is gst taxable item so can we claim ITC of freight expense aganist sales of oils