ITC on combined bills (Material and Service)

The Taxable GST Rate of Transport of Coastal goods is 5%. Hence eligible ITC is only from input Services.

Some service provider gives invoice which includes material and labour. They provider SAC for the transaction but not mentioning HSN. In the invoice they are mentioning Material and labour. Material cost is more than the labour cost.

Our doubt is that can we take the ITC from the bills.  

Replies (4)
Quick Summary
This discussion addresses the eligibility of claiming Input Tax Credit (ITC) on combined bills that include both materials and services, particularly when a single invoice is issued with a Service Accounting Code (SAC) but no HSN for materials. The consensus suggests that ITC can be claimed on such invoices, even if materials form a significant portion of the cost, as long as the services are eligible for ITC. The example of container repair, involving both material and labour, illustrates this point.

What is the material...?
it's used for You?

Example

For container Repair

Material and service both are used to repair the container. Single invoice received for them mentioning SAC.

 

No problem...
You can claim ITC for the Invoices...

Can you please give me any reference from GST for the eligibility of ITC

 

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