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ITC claim on courier charges

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?

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3 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 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)
Replied 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