Service Tax Input credit on GTA outward

[Vinay Sharma]

Dear Sir,

Please let us know if Service Tax paid for GTA service for Freight Out Ward on final products is eligible for taking Cenvat Credti uder Excise.

As per definition of Input service the expenses for clearance of final products upto the place of removal are to be treated as input service.

Please clarify.

Thanks  & Regards

 

 

 

AI Summary

Cenvat credit eligibility for GTA freight depends on place of removal and whether freight is separately invoiced or included in price.
Cenvat credit of service tax on GTA outward freight depends on the transportation qualifying as an input service tied to the place of removal; separate service invoicing and recovery from the buyer allows set off, whereas when freight is included in a FOR sale credit is generally unavailable unless transfer of property, allocation of risk, and inclusion of freight in the price establish the place of sale at destination, in which case credit may be admissible.