Service Tax on goods transport agency - certain doubts clarified

Service Tax on Goods Transport: Consignors/Consignees in Specific Categories Must Pay; Exemptions for Certain Goods and Small Consignments.

The government clarifies that the service tax on goods transport agencies primarily applies to the agencies themselves. However, if the consignor or consignee belongs to specific categories, such as factories, companies, corporations, societies, co-operative societies, dealers of excisable goods, or registered partnerships, they must pay the tax. Traders not falling under these categories are exempt unless they pay freight to entities within these categories. Exemptions exist for consignments below certain thresholds and for transporting specific goods like fruits, vegetables, eggs, or milk. No penalties will be imposed for genuine omissions or procedural errors, aiming to minimize the tax burden on traders.