Cenvat Credit in case of GTA

Yes, if the GTA is an input service.

GTA services are input services. The same couldbe broken into 3 segments as under: a. GTA service for receipt of materials - No doubt credit available b. GTA service for intermediate movement to job workers, between plants/ depots - No doubt available c. GTA services for despatches to cusotmers - There is some doubt due to the defintion of input services wherein the transportation upto the place of removal has been metnioned. This portion maybe deferred or aviled and reversed under protest. Once the matter is finally decided then only matter would be clear.

GTA for outward transport till point of removal is permissible.

The place place of removal has been defined in explanation to Section 4 of the Central Excise Act. It means any place where goods are being sold by the assessee. When the assessee is paying freight on otward trasport till the doorstep of the buyer, it means that the goods are being sold at the doorstep of the buyer, and the doorstep of the buyer becomes a place of removal. In that case credit till doorstep of the removal is permissible. 

Dear Sir,

I want to ask that I have Cenvat Input about 3 Lacs can I adjust The GTA Liability  (After Abatement 25% Service Tax) through this 3 Lacs.

Please Tell me.

My E-mail id. is = sunil_kumar10520 @ yahoo.com

Dear Sunil,

                   As per the provisions, service receipient has to pay service tax first and claim the same for cenvat credit. If u have already 3L cenvat credit , I believe we cant adjust the same with the liability which is arisen due to availed service from transport agency.

GTA on outwards is available as mentioned by Mr Rajesh.

However, other criterias to be considered -

1  Frieght charges should be included in the Assesable Value on which Excise Duty is paid

2  Marine Insurance Policy in favour of Consignor for the goods despatched will be additional proof to establish ownership of the goods in transit