GST ITC on Demurrage charges

By | January 14, 2018
(Last Updated On: January 14, 2018)

GST ITC on Demurrage charges

  1. Can we avail credit of GST paid on Demurrage Charges (paid to Railways for Outward Transportation of Goods)?
  2. In Question 1 What will be the situation if we are recovering such demurrage charges(including GST) from parties?

Section 16. (1) of CGST Act 2017 :  Every registered person shall, subject to such conditions and restric- tions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person.

1.yes if it your prices are FOR destination as it is normal business expenditure – railways have to issue invoice with your GSTIN and upload that invoice in their GSTR 1

2.If you take credit, then you have to charge GST to customer

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