Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

ITC claim on courier charges

4067 views

Save Share

Sampurna Madugula

3 Points Posted on 05 March 2021

why cannot a tax payer claim itc on courier charges and how can we add the courier charges in the sale invoice?should it be as courier charges+gst or courier charges-reimbursement of expenditure?

Replies (3)

Quick Summary

This discussion clarifies that Input Tax Credit (ITC) on courier charges is claimable for business purposes, provided certain GST conditions are met. It addresses confusion arising from incorrect advice, explaining that courier charges including GST should be shown on invoices. The correct method is to add 'courier charges + GST' to your purchases and claim the ITC, rather than treating it as a reimbursement.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 05 March 2021

Yes GST paid on courier charges for the purpose of business is eligible for ITC.

Make sure that your GSTIN is provided to the courier agency so they can update in the GSTR-1.

Couriers charges+gst should be shown in invoice

Sampurna Madugula

3 Points Posted on 05 March 2021

But our CA told us we cannot claim itc on courier charges, leave the gst value and add only the taxable value in the purchases and add the courier charges (total invoice value) as courier charges-reimbursement of expenditures in the sale invoice