Service tax on gta
This query is : Resolved
14 May 2013
Dear experts, for example - 1) “A” transports his goods to 'B' in a goods carriage. No other goods are are loaded in the goods carriage. A pays a freight of Rs.1300.
whether A liable to pay ST?
2) “A” transports his goods to 'B' & 'C' in a goods carriage. He pays a freight of Rs.1800 (in which B's is 1300 and C's is 500)
whether A liable to pay ST?
3)"A" transports his goods to 'B' through a transporter by name 'Z' in a lorry , freight - 1300/-...."C" also transported his goods to "B" thru the same transporter that too in the same vehcile..freight - 500/-....
Whether A & C are laible to pay ST? If yes, how come they know that other goods were also sent in that goods carrier?
plz resolve my issue with reasons..
whether A liable to pay ST?
2) “A” transports his goods to 'B' & 'C' in a goods carriage. He pays a freight of Rs.1800 (in which B's is 1300 and C's is 500)
whether A liable to pay ST?
3)"A" transports his goods to 'B' through a transporter by name 'Z' in a lorry , freight - 1300/-...."C" also transported his goods to "B" thru the same transporter that too in the same vehcile..freight - 500/-....
Whether A & C are laible to pay ST? If yes, how come they know that other goods were also sent in that goods carrier?
plz resolve my issue with reasons..
14 May 2013
the exemption of 1500 and 750 are available only to goods transport agency. not to other person who is paying freight and liable to pay service tax.
24 December 2013
Sir,
For service tax under GTA , the transport agency however not liable for service tax. What is the need of exemption to them?
For service tax under GTA , the transport agency however not liable for service tax. What is the need of exemption to them?
24 July 2025
Let's clarify your queries point by point regarding **Service Tax (ST) liability under Goods Transport Agency (GTA) service**:
---
### Basic Law on Service Tax Liability for GTA (Transportation of Goods by Road)
* **Service tax on transportation of goods by road through a GTA is payable under Reverse Charge Mechanism (RCM).**
* **The service receiver (the person paying freight) is liable to pay service tax, not the GTA (service provider).**
* **However, GTA is liable to pay tax if service receiver is an individual or HUF (not a company, firm, etc.).**
---
### Now your examples:
#### 1) “A” transports goods to 'B' in his own goods carriage and pays freight of Rs.1300.
* If "A" himself owns the vehicle and is transporting his own goods, **there is no GTA involved**, so no service tax on freight.
* **No service tax liability on A** as he is not paying any third party for transportation.
---
#### 2) “A” transports goods to 'B' and 'C' in a goods carriage and pays freight Rs.1800 (B's Rs.1300 + C's Rs.500).
* Again, if A is using his own vehicle, it's a self-transportation.
* **No service tax on self-transport** because no GTA service is involved.
* If "A" pays a third party GTA for transport, then:
* Service tax is payable by **A** and **C** on their respective freight amounts under RCM.
* Service tax liability is on **each receiver of the service** i.e., the person paying freight to the GTA.
---
#### 3) “A” transports goods to 'B' through transporter "Z" (freight Rs.1300), and "C" also transports goods to "B" via same transporter in same vehicle (freight Rs.500).
* Here, **A and C are paying freight to GTA 'Z'** for their goods.
* Both **A and C are service recipients**.
* Both are liable to pay service tax **on their respective freight amounts** under RCM.
* Regarding how A or C know whether other goods are transported in the same vehicle:
* This is **not relevant for service tax liability**.
* Liability is **separately on the person who pays the freight to GTA for transportation**.
* Each recipient calculates service tax on their freight, regardless of others' freight or vehicle load.
---
### Regarding exemption limits (Rs. 1500 or Rs. 750):
* These exemptions are **available only to GTA as service providers**, not to service receivers.
* However, as per the 2012 Notification (30/2012-ST), **GTA's are exempted from service tax if freight charged per consignment is less than Rs. 1500**, but this exemption **does not apply to service receivers**.
* Service receivers have to pay service tax on the **full freight amount paid to GTA**, no exemption.
---
### Summary:
| Scenario | Service Tax Liability |
| -------------------------------- | ------------------------------------------------------------ |
| Self-transport by owner | No service tax |
| Payment to GTA by company/firm | Service tax paid by receiver under RCM |
| Payment to GTA by individual/HUF | Service tax paid by GTA (service provider) |
| Exemption on freight amount | Applies to GTA (if freight < Rs. 1500) only, NOT to receiver |
---
If you want, I can help with the formula for calculating service tax under RCM or sample workings for such freight payments.
Would you like that?
---
### Basic Law on Service Tax Liability for GTA (Transportation of Goods by Road)
* **Service tax on transportation of goods by road through a GTA is payable under Reverse Charge Mechanism (RCM).**
* **The service receiver (the person paying freight) is liable to pay service tax, not the GTA (service provider).**
* **However, GTA is liable to pay tax if service receiver is an individual or HUF (not a company, firm, etc.).**
---
### Now your examples:
#### 1) “A” transports goods to 'B' in his own goods carriage and pays freight of Rs.1300.
* If "A" himself owns the vehicle and is transporting his own goods, **there is no GTA involved**, so no service tax on freight.
* **No service tax liability on A** as he is not paying any third party for transportation.
---
#### 2) “A” transports goods to 'B' and 'C' in a goods carriage and pays freight Rs.1800 (B's Rs.1300 + C's Rs.500).
* Again, if A is using his own vehicle, it's a self-transportation.
* **No service tax on self-transport** because no GTA service is involved.
* If "A" pays a third party GTA for transport, then:
* Service tax is payable by **A** and **C** on their respective freight amounts under RCM.
* Service tax liability is on **each receiver of the service** i.e., the person paying freight to the GTA.
---
#### 3) “A” transports goods to 'B' through transporter "Z" (freight Rs.1300), and "C" also transports goods to "B" via same transporter in same vehicle (freight Rs.500).
* Here, **A and C are paying freight to GTA 'Z'** for their goods.
* Both **A and C are service recipients**.
* Both are liable to pay service tax **on their respective freight amounts** under RCM.
* Regarding how A or C know whether other goods are transported in the same vehicle:
* This is **not relevant for service tax liability**.
* Liability is **separately on the person who pays the freight to GTA for transportation**.
* Each recipient calculates service tax on their freight, regardless of others' freight or vehicle load.
---
### Regarding exemption limits (Rs. 1500 or Rs. 750):
* These exemptions are **available only to GTA as service providers**, not to service receivers.
* However, as per the 2012 Notification (30/2012-ST), **GTA's are exempted from service tax if freight charged per consignment is less than Rs. 1500**, but this exemption **does not apply to service receivers**.
* Service receivers have to pay service tax on the **full freight amount paid to GTA**, no exemption.
---
### Summary:
| Scenario | Service Tax Liability |
| -------------------------------- | ------------------------------------------------------------ |
| Self-transport by owner | No service tax |
| Payment to GTA by company/firm | Service tax paid by receiver under RCM |
| Payment to GTA by individual/HUF | Service tax paid by GTA (service provider) |
| Exemption on freight amount | Applies to GTA (if freight < Rs. 1500) only, NOT to receiver |
---
If you want, I can help with the formula for calculating service tax under RCM or sample workings for such freight payments.
Would you like that?
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