watch_later 05/06/18

Our Company provides transportation services by road. We want to buy some vechicles, for which we have to pay GST on it. We want to know if we charge 12% gst on our transportation services to the customer will the get input credit of the same? and secondly can we take input credit of Vehicle purchase against 12% gst on our transportation services?

2 Responses | Latest response: 13/06/18 | Sort by Likes(thumb_up) Recent | GST Reply
watch_later 06/06/18

Yes you are eligible for input credit if you are charging 12% GST.

You will get input credit on vehicles.

Input on purchase of vehicles is allowed only under following circumstances:

(a) motor vehicles and other conveyances except when they are used––
(i) for making the following taxable supplies, namely:—
(A) further supply of such vehicles or conveyances ; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehicles
or conveyances;
(ii) for transportation of goods;

Since you are using vehicles for transportation purpose, you are eligible for GST input credit.

watch_later 13/06/18

as a manufacturing Unit, we are paying Inward Freight for Purchase and out fright for Supply of materials. We are eligible to get input credit for both Freight on RCM in GST?


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