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?
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?
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.
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