GTA INWARD CREDIT ELIGIBLE ?
This query is : Resolved
31 January 2009
Dear Sir / Madam
We are manufacturer of excisable goods duitable and exempted goods and we are paying GTA inward ,GTA Outward, GTA Export outward Service Tax by TR-6
Now our questation is :
1 Can we avail credit of GTA inward & GTA Export Ser tax paid by TR-6 when we are producing duitable and exempted goods both ?
Pls reply ASAP
Keyur Vora
We are manufacturer of excisable goods duitable and exempted goods and we are paying GTA inward ,GTA Outward, GTA Export outward Service Tax by TR-6
Now our questation is :
1 Can we avail credit of GTA inward & GTA Export Ser tax paid by TR-6 when we are producing duitable and exempted goods both ?
Pls reply ASAP
Keyur Vora
03 February 2009
first of all you should maintain separate account for excisable & exempted goods and classify whether GTA service is used for exemted or taxable goods and on such basis you can take credit only on the part of taxble goods, and if it is not possible to maintain separate account then on montly basis pay duty @10% on exemted goods and availed full credit of GTA inward & Gta Export and dont bother about excisable and exemted goods.
Pradnya Ksagar.
K- Sagar Management Consultant.
Pradnya Ksagar.
K- Sagar Management Consultant.
04 February 2009
Infact we are manufacturing & exporting both excisable & non excisable goods(Edible Oil & De-Oiled Cake).We are maintaing separate records ofcourse.We are doing export of excisable goods (DOC) which is exempted by way of notification.PLease let us clrify :-
Can we take cenvat credit of all inputs & input services including GTA-Inward & GTA outward related to port only?
With Regards,
Keyur
Can we take cenvat credit of all inputs & input services including GTA-Inward & GTA outward related to port only?
With Regards,
Keyur
04 February 2009
Infact we are manufacturing & exporting both excisable & non excisable goods(Edible Oil & De-Oiled Cake).We are maintaing separate records ofcourse.We are doing export of excisable goods (DOC) which is exempted by way of notification.PLease let us clrify :-
Can we take cenvat credit of all inputs & input services including GTA-Inward & GTA outward related to port only?
With Regards,
Keyur
Can we take cenvat credit of all inputs & input services including GTA-Inward & GTA outward related to port only?
With Regards,
Keyur
27 July 2024
In the context of Cenvat Credit under the pre-GST regime and Input Tax Credit (ITC) under GST, here's a detailed explanation for your queries regarding Goods Transport Agency (GTA) services, including inward and outward transport:
### **1. Cenvat Credit for GTA Services under Excise (Pre-GST Regime)**
#### **A. **GTA Inward Services**
- **Eligibility for Cenvat Credit**:
- **GTA Inward Services**: Yes, Cenvat Credit of GTA services used for inward transportation of raw materials, inputs, or capital goods is generally available. This applies if the transportation is directly related to the manufacturing process or the receipt of inputs.
- **Eligibility**: The credit can be claimed provided that the services are used in the manufacture of dutiable goods or for providing output services.
- **For Exempt and Dutiable Goods**:
- **Dutiable Goods**: Cenvat Credit on GTA services for inputs used in the manufacture of dutiable goods is allowed.
- **Exempt Goods**: Credit for GTA services related to inputs used in the manufacture of exempted goods may not be available. However, if the credit is attributable to inputs used for both dutiable and exempted goods, you need to apportion the credit accordingly and reverse the proportion attributable to exempted goods.
#### **B. **GTA Outward Services**
- **Eligibility for Cenvat Credit**:
- **GTA Outward Services**: Generally, credit for outward transportation services is available only if it is up to the place of removal (i.e., from the factory gate to the buyer's premises or port for export). For services beyond the place of removal, credit may not be available.
- **For Export Outward**:
- **Export**: Under the Cenvat Credit Rules, input services used in the export of goods are eligible for credit. Therefore, GTA services used for transporting goods to the port of export are eligible for Cenvat Credit.
### **2. Input Tax Credit (ITC) under GST**
#### **A. **GTA Inward Services**
- **Eligibility for ITC**:
- **GTA Inward Services**: Under GST, you can claim ITC on GTA services used for inward transportation of goods, whether it’s raw materials or capital goods. The credit is available if the services are used for business purposes, i.e., for manufacturing dutiable goods or providing taxable services.
- **Records**: Maintain separate records for input services used for manufacturing dutiable versus exempted goods. ITC should be apportioned based on the use of services for taxable and exempt supplies.
#### **B. **GTA Outward Services**
- **Eligibility for ITC**:
- **GTA Outward Services**: ITC on outward transportation services is available up to the place of removal. For exports, ITC on outward transportation to the port of export is available, as export of goods is considered a zero-rated supply under GST.
### **3. Specific Scenarios**
#### **A. **Export of Excisable and Non-Excisable Goods**
- **Cenvat Credit**: You can avail Cenvat Credit of all inputs and input services, including GTA, used for the manufacture of both dutiable and exempted goods. For exempted goods, you need to reverse the credit proportionately.
- **GST ITC**: You can claim ITC on inputs and input services, including GTA services, used for the manufacture of both dutiable and exempted goods. Ensure to reverse the credit for exempt supplies in proportion to the total input credits.
### **4. Practical Considerations**
- **Maintain Records**: Maintain detailed records to segregate the input services used for dutiable vs. exempted goods, and for exports.
- **Apportion Credit**: In case of mixed supplies (both dutiable and exempted), apportion the ITC or Cenvat Credit based on the proportion of taxable versus exempt supplies.
- **Reverse Credit**: Ensure compliance with credit reversal rules for exempted supplies under both Cenvat and GST.
### **Summary**
1. **Under Cenvat Credit (Pre-GST)**: Yes, you can claim credit for GTA inward and outward services used for dutiable goods and export of goods. For exempted goods, credit needs to be apportioned and reversed as applicable.
2. **Under GST**: You can claim ITC for GTA inward and outward services related to the place of removal and export. Maintain records and apportion credit correctly for dutiable vs. exempted supplies.
For detailed and specific cases, especially when dealing with large volumes of transactions and complex scenarios, consulting with a tax professional or GST consultant is recommended to ensure compliance with all regulations and accurate credit claims.
### **1. Cenvat Credit for GTA Services under Excise (Pre-GST Regime)**
#### **A. **GTA Inward Services**
- **Eligibility for Cenvat Credit**:
- **GTA Inward Services**: Yes, Cenvat Credit of GTA services used for inward transportation of raw materials, inputs, or capital goods is generally available. This applies if the transportation is directly related to the manufacturing process or the receipt of inputs.
- **Eligibility**: The credit can be claimed provided that the services are used in the manufacture of dutiable goods or for providing output services.
- **For Exempt and Dutiable Goods**:
- **Dutiable Goods**: Cenvat Credit on GTA services for inputs used in the manufacture of dutiable goods is allowed.
- **Exempt Goods**: Credit for GTA services related to inputs used in the manufacture of exempted goods may not be available. However, if the credit is attributable to inputs used for both dutiable and exempted goods, you need to apportion the credit accordingly and reverse the proportion attributable to exempted goods.
#### **B. **GTA Outward Services**
- **Eligibility for Cenvat Credit**:
- **GTA Outward Services**: Generally, credit for outward transportation services is available only if it is up to the place of removal (i.e., from the factory gate to the buyer's premises or port for export). For services beyond the place of removal, credit may not be available.
- **For Export Outward**:
- **Export**: Under the Cenvat Credit Rules, input services used in the export of goods are eligible for credit. Therefore, GTA services used for transporting goods to the port of export are eligible for Cenvat Credit.
### **2. Input Tax Credit (ITC) under GST**
#### **A. **GTA Inward Services**
- **Eligibility for ITC**:
- **GTA Inward Services**: Under GST, you can claim ITC on GTA services used for inward transportation of goods, whether it’s raw materials or capital goods. The credit is available if the services are used for business purposes, i.e., for manufacturing dutiable goods or providing taxable services.
- **Records**: Maintain separate records for input services used for manufacturing dutiable versus exempted goods. ITC should be apportioned based on the use of services for taxable and exempt supplies.
#### **B. **GTA Outward Services**
- **Eligibility for ITC**:
- **GTA Outward Services**: ITC on outward transportation services is available up to the place of removal. For exports, ITC on outward transportation to the port of export is available, as export of goods is considered a zero-rated supply under GST.
### **3. Specific Scenarios**
#### **A. **Export of Excisable and Non-Excisable Goods**
- **Cenvat Credit**: You can avail Cenvat Credit of all inputs and input services, including GTA, used for the manufacture of both dutiable and exempted goods. For exempted goods, you need to reverse the credit proportionately.
- **GST ITC**: You can claim ITC on inputs and input services, including GTA services, used for the manufacture of both dutiable and exempted goods. Ensure to reverse the credit for exempt supplies in proportion to the total input credits.
### **4. Practical Considerations**
- **Maintain Records**: Maintain detailed records to segregate the input services used for dutiable vs. exempted goods, and for exports.
- **Apportion Credit**: In case of mixed supplies (both dutiable and exempted), apportion the ITC or Cenvat Credit based on the proportion of taxable versus exempt supplies.
- **Reverse Credit**: Ensure compliance with credit reversal rules for exempted supplies under both Cenvat and GST.
### **Summary**
1. **Under Cenvat Credit (Pre-GST)**: Yes, you can claim credit for GTA inward and outward services used for dutiable goods and export of goods. For exempted goods, credit needs to be apportioned and reversed as applicable.
2. **Under GST**: You can claim ITC for GTA inward and outward services related to the place of removal and export. Maintain records and apportion credit correctly for dutiable vs. exempted supplies.
For detailed and specific cases, especially when dealing with large volumes of transactions and complex scenarios, consulting with a tax professional or GST consultant is recommended to ensure compliance with all regulations and accurate credit claims.
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