TaxTMI 
TaxTMI 
Registration
24 Sep 2015 
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Reverse charge for goods transport services: consignor or consignee must pay service tax; consignee may claim input credit.
Reverse charge responsibility for goods transport services falls on either the consignor or the consignee who pays freight; if the GTA does not discharge service tax, the person paying freight is liable and no small scale exemption applies. Abatement is applied to the freight value for computing the taxable amount. A consignor who pays cannot claim input credit, while a consignee who pays may claim input tax credit when transport is an input for manufacturing, and must register for service tax even if not providing output services. (AI Summary)
Reverse charge responsibility for goods transport services falls on either the consignor or the consignee who pays freight; if the GTA does not discharge service tax, the person paying freight is liable and no small scale exemption applies. Abatement is applied to the freight value for computing the taxable amount. A consignor who pays cannot claim input credit, while a consignee who pays may claim input tax credit when transport is an input for manufacturing, and must register for service tax even if not providing output services. (AI Summary)
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.