St registration
This query is : Resolved
19 July 2012
we,a pvt ltd co are receiver of the GTA services.do we need to register ourself after it crosses 10lac limit or we have to see limit of 1500 or 750?
what if we are providing other services then do we need to see total of both the services for limit of 10lac or individually we have to check?
what if we are providing other services then do we need to see total of both the services for limit of 10lac or individually we have to check?
20 July 2012
For GTA service no limit of Rs.10 lacs is available as it is on reverse charge method. You have to see the limit of Rs.1500 or Rs.750. In case of other services you have to see the limit of Rs.9 lakhs for registration if that service doesnot cover under the reverse mechanism.
28 July 2012
this is the 1st year of the pvt ltd co....still we have to register for GTA services if it exceed limit of Rs.1500? what if we have not registered ourself for the GTA services in the 1st year although the limit is exeeded? what will be the consequences of not paying st and not filling returns?
25 July 2025
Here's a detailed explanation for your queries regarding **Service Tax (ST) registration for GTA services and other services**:
---
### 1. **Registration Threshold for GTA Services (Reverse Charge Mechanism)**
* For **Goods Transport Agency (GTA) services**, the **service receiver is liable to pay Service Tax under Reverse Charge Mechanism (RCM)**.
* There is **no exemption limit of Rs 10 lakhs for GTA services under RCM**.
* Instead, registration and payment of Service Tax by the receiver is **mandatory once the service received exceeds Rs 1,500 (for one transaction)** or **Rs 750 (for a single conveyance)**.
* So, even if your **other taxable services turnover is less than Rs 9 lakhs**, you **must register separately for GTA services** if you receive GTA services above these thresholds.
---
### 2. **Threshold for Other Services (Not under RCM)**
* For other taxable services **not covered under RCM**, the **threshold for registration is Rs 9 lakhs aggregate turnover**.
* If your total taxable services (excluding RCM) exceed Rs 9 lakhs in a financial year, you must register for ST.
---
### 3. **Combined Threshold for Multiple Services**
* The **threshold for registration under normal scheme (Rs 9 lakhs)** is computed on the **aggregate value of all taxable services provided by you, excluding those under RCM**.
* The **RCM services have separate registration and payment requirements** based on the limits mentioned (Rs 1,500 or Rs 750 per transaction).
---
### 4. **First Year Registration for GTA Services**
* Even in the **first year of company incorporation**, if you **receive GTA services exceeding Rs 1,500 (or Rs 750 for single conveyance)**, you **must register for ST and pay ST under RCM**.
* **Non-registration or non-payment of ST on GTA services under RCM is a violation** and may attract:
* Interest on delayed/non-payment
* Penalties as per Service Tax laws
* Possible show cause notices and adjudication
* You are also required to **file Service Tax returns (ST-3) regularly**, reporting such transactions.
---
### **Summary Table**
| Scenario | Threshold for Registration/Payment | Remarks |
| ----------------------------------------- | ------------------------------------------------- | --------------------------------------------------------- |
| Receiving GTA services (RCM) | Rs 1,500 per transaction or Rs 750 per conveyance | Mandatory registration & payment irrespective of turnover |
| Providing other taxable services (Normal) | Aggregate turnover Rs 9 lakhs per year | Registration & ST payment applicable |
| Both GTA & other services | Separate threshold checks apply | Maintain separate records |
| First year of business | Same rules apply | No exemption for new companies |
---
### **Recommendations**
* **Register immediately for Service Tax for GTA services if above limits are exceeded.**
* Maintain **proper documentation and invoices** for all GTA services received.
* Ensure **timely payment of ST under RCM** and **regular filing of ST returns**.
* Consult your tax advisor or legal expert if you face notices from tax authorities.
---
If you want, I can help you draft:
* A **sample registration application** for Service Tax
* A **compliance checklist** for your company for handling GTA services and other taxable services
Would that be helpful?
---
### 1. **Registration Threshold for GTA Services (Reverse Charge Mechanism)**
* For **Goods Transport Agency (GTA) services**, the **service receiver is liable to pay Service Tax under Reverse Charge Mechanism (RCM)**.
* There is **no exemption limit of Rs 10 lakhs for GTA services under RCM**.
* Instead, registration and payment of Service Tax by the receiver is **mandatory once the service received exceeds Rs 1,500 (for one transaction)** or **Rs 750 (for a single conveyance)**.
* So, even if your **other taxable services turnover is less than Rs 9 lakhs**, you **must register separately for GTA services** if you receive GTA services above these thresholds.
---
### 2. **Threshold for Other Services (Not under RCM)**
* For other taxable services **not covered under RCM**, the **threshold for registration is Rs 9 lakhs aggregate turnover**.
* If your total taxable services (excluding RCM) exceed Rs 9 lakhs in a financial year, you must register for ST.
---
### 3. **Combined Threshold for Multiple Services**
* The **threshold for registration under normal scheme (Rs 9 lakhs)** is computed on the **aggregate value of all taxable services provided by you, excluding those under RCM**.
* The **RCM services have separate registration and payment requirements** based on the limits mentioned (Rs 1,500 or Rs 750 per transaction).
---
### 4. **First Year Registration for GTA Services**
* Even in the **first year of company incorporation**, if you **receive GTA services exceeding Rs 1,500 (or Rs 750 for single conveyance)**, you **must register for ST and pay ST under RCM**.
* **Non-registration or non-payment of ST on GTA services under RCM is a violation** and may attract:
* Interest on delayed/non-payment
* Penalties as per Service Tax laws
* Possible show cause notices and adjudication
* You are also required to **file Service Tax returns (ST-3) regularly**, reporting such transactions.
---
### **Summary Table**
| Scenario | Threshold for Registration/Payment | Remarks |
| ----------------------------------------- | ------------------------------------------------- | --------------------------------------------------------- |
| Receiving GTA services (RCM) | Rs 1,500 per transaction or Rs 750 per conveyance | Mandatory registration & payment irrespective of turnover |
| Providing other taxable services (Normal) | Aggregate turnover Rs 9 lakhs per year | Registration & ST payment applicable |
| Both GTA & other services | Separate threshold checks apply | Maintain separate records |
| First year of business | Same rules apply | No exemption for new companies |
---
### **Recommendations**
* **Register immediately for Service Tax for GTA services if above limits are exceeded.**
* Maintain **proper documentation and invoices** for all GTA services received.
* Ensure **timely payment of ST under RCM** and **regular filing of ST returns**.
* Consult your tax advisor or legal expert if you face notices from tax authorities.
---
If you want, I can help you draft:
* A **sample registration application** for Service Tax
* A **compliance checklist** for your company for handling GTA services and other taxable services
Would that be helpful?
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