Registration

[MANASH MUKHERJEE]

A manufacturer of mineral water,who procures inputs like pet bottles from outside by paying freight is not yet been registered.Is he not liable to pay service tax on GTA.

AI Summary

Mineral Water Manufacturer May Owe Service Tax on Freight; Consignee Liable if Transporter Doesn't Pay. A discussion on a forum addresses whether a mineral water manufacturer, who pays freight for inputs like PET bottles, is liable for service tax on Goods Transport Agency (GTA) services. Participants clarify that either the consignor or consignee must pay the service tax, with the consignee liable if the transporter does not pay. The manufacturer must register for service tax if liable. The abatement on GTA was reduced from 75% to 70% as of April 1, 2015, meaning the service tax is payable on 30% of the freight amount. Participants emphasize the importance of registration and compliance with reverse charge mechanisms.