GST ITC on Transport of minerals from mine to buyer

By | August 2, 2017
(Last Updated On: August 2, 2017)

Question :  Can GST charged as per transport bilti on movement of mineral from mine to the buyer be allowed as ITC to the buyer irrespective of the ownership of the transporting vehicle?

Answer: In case of an FOR contract for supply of mineral from the mine to the buyer, it is a composite supply where
the consideration will be inclusive of the transportation cost. Therefore, GST on forward charge will be payable by
the supplier of the mineral and credit will be available to the buyer if otherwise available. The supplier of the mineral will also pay tax on reverse charge basis on the freight charged by the GTA and the credit of the same will be available to the supplier of the mineral.

In case of an ex-works contract of supply, where the GTA service has been booked by the supplier at the instance of
the buyer and the service is billed by the GTA to the buyer and the minerals are billed by the supplier of the mineral
to the buyer, then GTA on reverse charge shall be paid by the buyer who shall be entitled to take credit of the same.
The tax on the mineral will be paid on forward charge by the supplier of the mineral and credit will be available to
the buyer if otherwise available.

Related GST FAQ

GST on Mining Sector : FAQ

GST on Handicraft Sector : FAQ

150 GST FAQ’s Replied by Govt of India

GST Tweet -100 FAQs replied by Govt ; Compilation

GST Rates FAQs on queries of Various Sectors Clarified by Govt

GST FAQs on queries of Various Sectors : Issued by Govt

GST FAQs for Traders

GST Handbook – Free Download

GST on Drugs and Pharmaceuticals : FAQ

GST on E Commerce : FAQ

GST on Food Processing Industry : FAQ

GST on Textile : FAQ’s

GST on Export : FAQ’s

GST on MSME : FAQ’s

FAQs on Composition Levy under GST ( India )

Drawback after GST regime

GSTIN / PAN and Invoice information in Shipping Bill

Bond or LUT along with Shipping Bill

Related Topic on GST

TopicClick Link
GST Acts Central GST Act and States GST Acts
GST RulesGST Rules
 GST FormsGST Forms
GST RatesGST Rates
GST NotificationsGST Act Notifications
GST CircularsGST Circulars
 GST JudgmentsGST Judgments
GST Press ReleaseGST Press Release
GST BooksBest Books on GST in India
GST CommentaryTopic wise Commentary on GST Act of India
GST You Tube ChannelTaxHeal You Tube Channel
GST Online CourseJoin GST online Course
GST HistoryGST History and Background Material
Category: GST

About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com

Leave a Reply

Your email address will not be published.