service tax resposibility
This query is : Resolved
21 May 2017
sir/madam.
we are receiver of services of goods trandport and in their service tax bill , they charged service tax @15%.
now i want to know our respodibility related to service tax as a service receiver.
21 May 2017
Read GTA reverse charge rule
25 July 2025
Hey! Here’s a clear explanation about your **Service Tax responsibility as a service receiver of Goods Transport Services (GTA):**
---
### 1. **Who pays Service Tax on Goods Transport Services?**
* For **Goods Transport Agency (GTA) services**, the Service Tax law says the **service receiver is liable to pay Service Tax under Reverse Charge Mechanism (RCM)** in certain cases.
* However, this applies **only if the service receiver is a “specified person”** (like a company, firm, body corporate, etc.).
* If the receiver is an **individual or HUF (Hindu Undivided Family)**, **RCM is generally not applicable** for GTA services.
---
### 2. **What about the 15% Service Tax charged by the transporter?**
* The **current service tax rate for GTA services is 5% (plus applicable cess)**, **not 15%**.
* If the transporter has charged **15% service tax**, it is likely including other services or it might be an error.
* Also, **if the transporter charges service tax under normal charge, you (service receiver) don’t pay again under RCM**.
---
### 3. **Your responsibility as a service receiver**
* If your business is a **specified person**, you must:
* Pay Service Tax on GTA service under Reverse Charge, directly to the government (if transporter did NOT charge Service Tax).
* Obtain Service Tax Registration if you don’t have one.
* File Service Tax returns declaring the tax paid under RCM.
* If the transporter has already charged you Service Tax on their invoice (i.e., charged you 5% service tax properly), then:
* You **do not pay tax again under RCM** on that service.
* You **cannot claim Input Credit on such tax paid under RCM**, since GTA service under RCM does not allow credit.
---
### 4. **In brief:**
| Scenario | Your Responsibility |
| ------------------------------------- | ----------------------------------------- |
| Transporter charges 5% ST properly | Pay transporter, no RCM tax to pay by you |
| Transporter does NOT charge ST | Pay ST under RCM directly |
| Transporter charges 15% ST (unlikely) | Verify details & clarify charges |
---
If you want, I can help you check if your business is liable under RCM and guide you on registration and payment procedures. Would you like that?
---
### 1. **Who pays Service Tax on Goods Transport Services?**
* For **Goods Transport Agency (GTA) services**, the Service Tax law says the **service receiver is liable to pay Service Tax under Reverse Charge Mechanism (RCM)** in certain cases.
* However, this applies **only if the service receiver is a “specified person”** (like a company, firm, body corporate, etc.).
* If the receiver is an **individual or HUF (Hindu Undivided Family)**, **RCM is generally not applicable** for GTA services.
---
### 2. **What about the 15% Service Tax charged by the transporter?**
* The **current service tax rate for GTA services is 5% (plus applicable cess)**, **not 15%**.
* If the transporter has charged **15% service tax**, it is likely including other services or it might be an error.
* Also, **if the transporter charges service tax under normal charge, you (service receiver) don’t pay again under RCM**.
---
### 3. **Your responsibility as a service receiver**
* If your business is a **specified person**, you must:
* Pay Service Tax on GTA service under Reverse Charge, directly to the government (if transporter did NOT charge Service Tax).
* Obtain Service Tax Registration if you don’t have one.
* File Service Tax returns declaring the tax paid under RCM.
* If the transporter has already charged you Service Tax on their invoice (i.e., charged you 5% service tax properly), then:
* You **do not pay tax again under RCM** on that service.
* You **cannot claim Input Credit on such tax paid under RCM**, since GTA service under RCM does not allow credit.
---
### 4. **In brief:**
| Scenario | Your Responsibility |
| ------------------------------------- | ----------------------------------------- |
| Transporter charges 5% ST properly | Pay transporter, no RCM tax to pay by you |
| Transporter does NOT charge ST | Pay ST under RCM directly |
| Transporter charges 15% ST (unlikely) | Verify details & clarify charges |
---
If you want, I can help you check if your business is liable under RCM and guide you on registration and payment procedures. Would you like that?
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