Question. In case of coal industries, there is huge accumulation of ITC specially for importers. They pay 5% IGST + cess on imports. In addition, they pay handling charges, C&F charges etc. on which GST is applicable @ 18%. On sales, whether they can charge price for coal and charge 5% GST + Cess and separate invoices for handling charges by charging 18% on it which will be in proportion of handling charges paid at the time of imports?
Ans. The value of incidental cost incurred by the coal industry need to be added to the value of output by the coal industry. Hence, they cannot charge handling charges separately.
