GTA-Service Tax exposure

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This query is : Resolved

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This discussion addresses service tax liability for Goods Transport Agency (GTA) services. It clarifies that when GTA services are provided to registered persons, Reverse Charge Mechanism (RCM) applies, making the recipient liable. For services to unregistered persons, the general consensus is that RCM also applies, and there might be exemptions available, though specific notification details remain a point of discussion. The key takeaway is that in most scenarios involving GTA services, the recipient is liable for service tax under RCM, with potential exemptions to consider.

Sharan KB

Sharan KB (Querist)

02 October 2021 Dear Sir/Madam,

The person is registered under the Service tax; he rendered services to following people

1. GTA service to registered person.
2. GTA services to unregistered person.

However, under service tax he has not discharged any service tax liability and even not filed ST-3 returns also.

please give your valuable opinion on this, whether any liability is there on this person(individual)

Thank you in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

03 October 2021 No liability. RCM applicable on GTA services.

Sharan KB

Sharan KB (Querist)

04 October 2021 Please confirm sir, even if GTA registered under Service Tax and gives GTA service to unregistered person also comes under the purview of exemption category or not.
Thank you in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 October 2021 It's confirmed even if GTA registered under GST and gives GTA service to unregistered person also comes under the purview of exemption category.

Sharan KB

Sharan KB (Querist)

05 October 2021 sir can you please quote the exemption notification if it is available.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

05 October 2021 GTA RCM applicable even if it's registered under GST.

Sharan KB

Sharan KB (Querist)

05 October 2021 1. Sir, in service tax if GTA (registered) gives service to proprietor(unregistered) is this line of transaction brought under mega exemption ? here RCM does not work, or should receiver obtain ST registration and discharge ST under RCM?
2. since if GTA gives service to registered person comes under RCM but what about the above transaction?

Please let me know whether exemption can be claimed for point No.1? if yes please quote the exemption notification.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

05 October 2021 See the link.
https://taxguru.in/service-tax/service-tax-goods-transport-agency-gta-guide.html

Sharan KB

Sharan KB (Querist)

05 October 2021 still there is no clarity on point No.1 sir.

Sharan KB

Sharan KB (Querist)

05 October 2021 We are proprietary firm and have received services from GTA and paid freight respectively. Since we are not covered in the above ‘specified category’, GTA should be liable pay service tax in this case.
Who should be liable to pay service tax if GTA is unregistered?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

05 October 2021 In both the above cases service tax not payable.

Sharan KB

Sharan KB (Querist)

05 October 2021 Thank you for your valuable opinion sir and much appreciated your service.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

05 October 2021 You are welcome........

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