Question ID :
44850
082701
We have sent one consignment of 18 kg by Courrier to canada on Proforma invoice stating sample consignment . Value stated is CAD 400 Rs 24600- without giving bifurcation of Value and courrier charges. An amount of Rs 15500 Taxable value + GST has been paid to courrier company Are we to reverse input on 24600- minus15500 @5% Further can we take input credit for GST paid to courrier company?
Posted by
Mahesh Kumar
on
May 11, 2025
Filed Under
GST
You can claim full input tax credit (ITC) on the GST paid to the courier company, provided the invoice is in your firm’s name and the service is used for business (export) purposes. Since the consignment was sent as a sample to Canada and export qualifies as a zero-rated supply under GST (even without payment of tax under LUT), there is no requirement to reverse ITC on the goods or courier charges under Rule 42. However, if the sample was sent without export documentation and is treated as a non-GST supply, proportionate reversal may apply. But in your case, if the shipment is considered an export, full ITC is allowed and no reversal is needed.
Posted by
SACHIN KUMAR RAI on
May 12, 2025