DEAR SIR, CAN A PETROL OUTLET DEALER CLAIM ITC OF GST PAID ON LICENCE FEE(SSLF FROM HINDUSTAN PETROLEUM LTD) TO COMPANY?

Reply— If license fee is being paid in connection with both taxable supply which is supply of lubricants and exempted supply which is sale of petrol, proportionate ITC will be available. Hence as per section 17(2) of the CGST Act, read with rule 42 of the CGST Rules, the registered person is entitled to claim proportionate ITC on the said license fee.