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Input Tax Credit on Biodiesel

Meghna (Articleship) (131 Points)

16 November 2018

Can transporter get input tax credit on bio diesel???

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9 Replies

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 16 November 2018

PETROL / DIESEL OUT OF THE GST PREVIEW SO CAN'T TAKE INPUT

Meghna (Articleship) (131 Points)
Replied 16 November 2018

sir biodiesel is under gst

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 16 November 2018

NO INPUT CAN BE AVAILED FOR THE BIO DEISEL

Meghna (Articleship) (131 Points)
Replied 16 November 2018

undeer which section

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 16 November 2018

"This has made Biodiesel costlier than High-Speed Diesel (HSD) and biodiesel users will not get any Input Credit for use of it. Both these put together, the effective cost of Biodiesel has become unviable to the end users. Eventually the entire Biodiesel industry will come to a halt, despite this Green Fuel having such environment and social benefits," BDAI said in the letters.

-- The Biodiesel Association of India (BDAI)

Meghna (Articleship) (131 Points)
Replied 16 November 2018

Sir this is applicable for state transportation , railway

MUKESH (vice president) (24 Points)
Replied 05 October 2020

The denial of Credit is governed by Section 17(5), I do not think the Bio Diesel and its usuage have been put into restrictive list, accordingly GST Credit should be made available.

MUKESH (vice president) (24 Points)
Replied 05 October 2020

Unless the Transporter is under RCM

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 05 October 2020

Yes, ITC should be available. Although, if transporter is paying tax under 5% without ITC or his services are liable to reverse charge (payable by recipient of services), then ITC would not be eligible.