Lfr charged by bpcl from its dealer with gst, whether dealer can get input of this gst ?

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We are a Dealer of BPCL running Petrol Pump at Panchkula.  BPCL is charging Licence Fee Recovery (LFR) from us alongwith GST @ 28% on LFR.  The question is -  Whether Dealer should take Credit of this 28% GST paying on LFR ? Pleae advice. 


Attached File : 856521 20180908170032 lfr invoice from bpcl.pdf downloaded: 1128 times
Replies (17)
Quick Summary
LFR charged by BPCL with GST is a disputed ITC issue. Some view it as eligible since it is a service for business, while others say ITC is not allowed as petroleum products are outside GST. Final eligibility depends on interpretation and departmental clarification.

yes you can claim all the tax. we are alsi runnung iocl RO.
Input tax credit of LFR will not be available, as they are in relation to exempted goods under GST.
Yes , you can claim ITC but as per secrion 17(2) the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies .
[2] Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies.

Rohit Ji, I humbly disagree with your submission, because Petrol, Diesel etc are exempted under GST, but this is the matter of Licence Fee Recovery (LFR) which is not exempted and this is the reasons Oil Marketing Company charging GST on LFR from its Dealer and Dealer should have right to Credit this Input GST just similer to any other Rent paid during the course of Business.   Please suggest.

you can claim itc on lfr. i m also a dealer of Ioc. we also claim all itc. its under services.
Originally posted by : Priyokumar Thounaojam
you can claim itc on lfr. i m also a dealer of Ioc. we also claim all itc. its under services.

Yes you are right. Its not a Purchase of Goods, but it is a Purchase of Service, just like other service of AMC etc. etc.by the dealers

i think u cannot claim itc on lfr due to all the outward supply are non gst supply

As per petroleum.nic.in, you can not claim ITC of GST charged on LFR.

please click the link below and serach LFR word in the file for further details

https://www.petroleum.nic.in/sites/default/files/FAQs%20on%20GST.pdf

As per petroleum.nic.in, you can not claim ITC of GST charged on LFR. please click the link below and serach LFR word in the file for further details (Refer Point no. 32)

Read more at: https://www.caclubindia.com/forum/details.asp?mod_id=483417#reply

As per petroleum.nic.in, you can not claim ITC of GST charged on LFR. please click the link below and serach LFR word in the file for further details (Refer Point no. 32)

Read more at: https://www.caclubindia.com/forum/details.asp?mod_id=483417#reply

Sir lfr me input tax credit clean krna h ki nahi

It's a ineligible Input, you can not claim Tax input of GST charged on LFR because it is related to Petrol & Diesel, Which are non-GST Supplies.

Sir, Please Clarify for following issue:

In case of LFR Charges we paid TDS as rent u/s. 194I of Income Tax Act,1961 and it is for operating of business only calculation of the same is based on purchase of petrol and diesel,

So that Input of LFR Charges can treated as exempt supply in GST but taxable supply in VAT i.e. in Indirect Taxes it is taxable,

AND INPUT TAX CREDIT ON GST CAN AVAIL OR NOT ?, ON THE BASIS OF ABOVE,

I request you to please provide further guidance on the same,

Thank you.

  

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