Service tax - air freight

This query is : Resolved

naveen (Querist)
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27 October 2016 Dear Member,

As we're aware that Service Tax on Air Freight is exempt. So, we need to mention the Air Freight receipt amount in ST-3 as "Amount Charged for exempted service provided or to be provided (other than export of service".

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 October 2016 Yes show it under the heading.

naveen

naveen (Querist)
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27 October 2016 Thanks Sir,

But is it mandatory to mention in ST-3?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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24 July 2025 Yes, it is mandatory to mention air freight receipts, even though they are exempt, in the ST-3 Return under the specified heading.

✅ Explanation:
🚚 Air Freight Services – Service Tax Status:
Service Tax on air freight (transport of goods by air) was exempt under:

🔹 Notification No. 25/2012-ST dated 20.06.2012,
specifically Entry No. 53 and later 19A, which exempted services by way of transportation of goods by air or sea from customs station of clearance to a place outside India.

📄 ST-3 Reporting Requirement:
Even though exempt, these services must still be reported in ST-3 under:

“Amount Charged for exempted service provided or to be provided (other than export of service)”

✅ Why Mandatory?
Rule 7 of Service Tax Rules and CBEC Instructions require declaration of all services, including:

Taxable

Exempted

Non-taxable

Exports

Helps the department track turnover and match exemptions.

Also needed to justify eligibility for CENVAT credit refunds in case of export services.

📝 Conclusion:
✔️ Yes, it is mandatory to declare exempt air freight income in ST-3.
🔖 Show it under:
“Exempted Services (Other than Export of Services)” in Part B1 or B2 of the ST-3 form (as applicable).

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