In re Amitkumar Maheshbhai Gulwani (GST AAR Gujarat)
M/s. Amitkumar Maheshbhai Gulwani, a GST-registered Goods Transport Agency (GTA) based in Bhavnagar, Gujarat, sought an advance ruling regarding the applicability of GST on GTA services and the eligibility to claim input tax credit (ITC) on bio-diesel fuel used for their operations. The applicant provides road transportation services for goods and issues consignment notes (LRs) for the same. They have been discharging GST under the forward charge mechanism at 12% for GTA services, availing ITC on eligible inputs and input services. The applicant intends to purchase renewable hydrocarbon bio-diesel (Mileage Diesel) classified under CTH 27101990, which attracts GST at 18% from registered suppliers, and wants to confirm if the ITC on this fuel can be fully claimed while paying GST under the forward charge.
The applicant’s query was framed as follows: whether they can pay GST at 12% under forward charge on GTA services under Notification No. 20/2017-Central Tax (R) dated 22.08.2017 read with Notification No. 13/2017-Central Tax (R) dated 28.06.2017, and claim full ITC, including on bio-diesel fuel. They submitted that they are a valid GTA under Section 2(ze) of the CGST Act, issue consignment notes for transporting goods, and have been complying with GST obligations. They relied on Notification Nos. 11/2017-CT(R) and 20/2017-CT(R), which allow a GTA to opt for forward charge with full ITC, while reverse charge is applicable only if the option is not exercised. They contended that there is no legal bar on availing ITC on inputs like bio-diesel when used in the course of providing taxable GTA services. Section 17(5) blocks ITC on motor vehicles used for passenger transport, but this restriction does not apply to goods carriage.
During the personal hearing on 16.10.2025, the applicant reiterated their submissions and provided supporting documents, including sample invoices, LRs, and Annexure-V declarations exercising the option to pay GST under forward charge. They noted that the fuel is essential for providing GTA services and that the statutory provisions do not prohibit claiming ITC on fuel for goods carriage. The applicant cited judicial precedents, including Sri Kannapiran Mills Ltd. (2023), Jaypee Rewa Cement (2001), J.K. Udaipur Udyog Ltd (2003), Vikram Cement (2006), and Solaris Chemtech Ltd. (2007), supporting the claim that ITC on fuel used in business operations is admissible.
