Question ID :
40371
ITC claim on reimbursement of freight charges
A small private limited co. makes zero-rated supply (export) without payment of tax and pays freight charges on behalf of overseas buyer. The overseas buyer reimburses the freight charges as per invoice raised by the exporter. As the freight charges are paid by the exporter ITC (@18%) is available to the exporter.
Query : Whether the exporter is eligible to claim ITC pertaining to the full amount of freight charges paid by it OR only the unrecoverable amount of freight charges.
Posted by
Pranab Kumar Bose
on
Aug 28, 2019
Filed Under
GST
First all, since the place of supply is outside, GST is not applicable. If you have paid GST in connection with export, you can claim ITC in full. Reimbursement is irrelevant.
Posted by
CA PRADEEP C B on
Aug 31, 2019