Rahul Gupta
Grahul2008@yahoo.com
91-8588041550
1.
Excluded from negative list [Sec. 66D(p)]:
Goods transport agency’s service are excluded from the negative list u/s 66D(p) and are, therefore ,within the charge of service tax.
2.
Goods transport agency [sec.65B(26)];
Goods transport agency means any person who-
 Provides service in relation to transport of goods by road and
 Issues consignment note ,by what ever name called;
The service would be GTA service only if there is transfer of custodial rights and only in that case , the issue of consignment note would be required. Custodial rights means right to custody of goods being transported. Such rights must be with the GTA, then only, the service will be liable to service tax under this category.
3.
Exemption to services provided by GTA [Entry 21 of Notification No. 25/2012]:
Services provided by a goods transport agency by way of - a) transportation of agricultural produce; b) transportation of goods where-
 gross amount charged for the transportation of goods on a consignment transported in a single goods carriage does not exceed one thousand five hundred rupees; or
 goods, where gross amount charged for transportation of all such goods for a single consignee in the goods carriage does not exceed rupees seven hundred fifty; c) foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages; or d) chemical fertilizer, oilcakes and organic manure (w.e.f 11-7-2014) e) newspaper or magazines registered with the Registrar of Newspapers; f) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; g) defence or military equipments; h) cotton, ginned or baled (w.e.f 11-7-2014)
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Rahul Gupta
Grahul2008@yahoo.com
91-8588041550
4.
Abatement 70%. Taxable Value = 30% of sum charged [Entry 7 of Notification No.
26/2012] (w.e.f 01-04-2015):
Services of goods transport agency in relation to transportation of goods, taxable sum , 30% of amount charged by service provider if (condition):
CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken by the service provider (w.e.f 11-7-2014) under the provisions of the CENVAT Credit Rules, 2004.
Further service recipient under reverse charge need not furnish declaration that service provider did not take credit (w.e.f. 11-7-2014)
5.
Person Liable to pay service tax in certain cases is person liable to pay freight [Rule
2(1) of Service Tax Rules, 1994 read with Notification No.30/2012]:
In relation to service provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road,
CASE 1 : where the person liable to pay freight is,-
(I) any factory registered under or governed by the Factories Act,
1948 (63 of 1948);
(II) any society registered under the
Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;
(III) any co-operative society established by or under any law;
(IV) any dealer of excisable goods, who is registered under the Central
Excise Act,1944 (1 of 1944) or the rules made there under;
(V) anybody corporate established, by or under any law; or
(VI) any partnership firm whether registered or not under any law including association of persons;
CASE 2 : Any other case
Person Liable to pay service tax any person who –
 pays or
 is liable to pay freight either –
 himself or
 through his agent
 for the transportation of such goods by tax. road in a goods carriage.
GTA Liable if such person Located in nontaxable territory
Provided that when such person is located in a non-taxable territory, the provider of such service shall be liable to pay service
Provider of such service viz. GTA
2

Rahul Gupta
Grahul2008@yahoo.com
91-8588041550
6.
Hiring of means of transport of goods to GTA – Exempt [ Entry 22 of Notification
NO.25/2012]
Services by way of giving on hire to a goods transport agency, a means of transportation of goods shall be exempt from service tax.
7.
Place of Provision of Service Rules, 2012
POP as per Rule 10 would be place of Location of person liable to pay service tax as above.
8.
Point of Taxation Rules, 2011
 Rule 3 of POT Rules, 2011 (Rule 7 in case of reverse charge).
 Rule 4 of POT Rules, 2011 (POT in case of change in effective rate of tax).
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