2025-VIL-195-AAR
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SGST Advance Ruling Authority

GST – Gujarat AAR - Goods Transport Agency (GTA), ITC on bio-diesel fuel – Applicant-GTA wants to purchase renewable hydrocarbon bio-diesel (Mileage Diesel) falling under HSN 27101990, on which GST is charged at 18% by registered suppliers, and claim ITC on the same - Whether the applicant can pay GST at 12% under Forward Charge on GTA services under Notification No. 11/2017-Central Tax (R) dated 22.06.2017, as amended, read with Notification No. 13/2017-Central Tax (R) dtd. 28.06.2017, and claim full ITC including on bio-diesel fuel – HELD - The applicant, being a GTA, is eligible to avail ITC as they have opted to pay GST at 12% (18% w.e.f. 22.09.2025) under the Forward Charge mechanism in accordance with Notification No. 11/2017-CT(R) dated 22.06.2017, as amended, read with Notification No. 13/2017-Central Tax (R) dtd. 28.06.2017 - As per Section 16(1) of the CGST Act, 2017, a registered person is eligible to avail credit of the input tax charged on any supply of goods or services or both used or intended to be used in the course of furtherance of his business. In this case, the bio-diesel is used as fuel for the applicant's operations, and therefore, it is used in the furtherance of their business - The bar under Section 17(5) of the CGST Act, 2017 is only in case of passenger vehicles and not to goods carriage. Therefore, the applicant can pay GST at 12% (18% w.e.f. 22.09.2025) under forward charge on GTA services under Notification No. 11/2017-Central Tax (R) dated 22.06.2017, as amended, read with Notification No. 13/2017-Central Tax (R) dtd. 28.06.2017 and claim full ITC including on bio-diesel fuel, subject to the fulfillment of the prescribed conditions – Ordered accordingly
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