section 17(2) itc reversal, Goods and Services Tax - GST

[AMAR GONDIYA]

Respected sir or madam

My client have registered transporter having own truck he supply both service taxable as 12% and 18% and also work as nil rated supply of other truck in such case can department reverse ITC u/s 17(2) as propossed ITC compare with Nil Rated Supply in which registered truck not used.

Also in rules we can't take Nil Rated or Exempt Supply Income in books

Tks

 

Posts / Replies

[KALLESHAMURTHY MURTHY]

Sir,

As per the query, your client is engaged in the supply of services for consideration whether it may be a truck registered or unregistered in your client's name. Other trucks used were not registered in your client's name, which means there was hiring. If ITC is attributable to such a truck, then ITC has to apportion under Rule 42 for nil-rated supplies. If ITC is not involved in such circumstance, ITC is not required to apportion but the burden of proof lies on your client. In case of not required to apportion at the hands of your client, the owner of the truck is not entitled to avail ITC.