- Who proves service in relation to transport of goods by road and
- issue consignment note, by whatever name called
- It should be any person
- It should provide service in relation to transport of goods
- Such transportation should be by road
- Agency should book the goods for transport
- It must issue a consignment note (or such document called by any other name) against the goods so booked and transported.
Exempted Services Notification No.25/2012 ST dated 20.6.2012 w.e.f 1.07.2012Transport of Specified goods by Road
Under this entry, exemption has been granted to services provided by a goods transport agency by way of
(a) transportation of –
- Food grains or pulses in a goods carriage;
(c) transportation of 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;
Similar exemptions existed earlier vide Notification No.34/2004-ST dated 3.12.2004 as amended by Notification No.4/2010-ST dated 27.02.2010 and Notification No.34/2004-ST dated 3.12.2004 (since rescinded)
Abatement in Service Tax (Notification No.26/2012-ST) effective from 1st July, 2012Service tax has to be paid only on 25% of the gross amount paid to the Goods Transport Agency i.e. abatement of 75% of Gross Amount Charged vide Notification No.26/2012-ST dated 20.6.2012 (earlier Notification No.1/2006-ST). For gross amount, Octroi is not taken in account.
Abatement is allowed only if CENVAT credit on inputs, capital goods and input services, used for providing services has not been taken under the CENVAT Credit Rules, 2004.
Person Liable to Pay TaxThe tax is payable on reverse charge basis by consignor or consignee who ever pays the freight, if the consignor or the consignee is factory, registered society, co-operative society, registered dealer, body corporate, partnership firm, LLP and association of persons.
If the goods transport agency has charged service tax then no service tax is payable by consignor or consignee. Also if person liable to pay Service Tax is located in non-taxable territory then goods transport agency shall be liable to pay service tax.