CLUBBING OF SERVICES FOR CHECKING GST EXEMPTION LIMIT

[rajesh singal]

Hello Sir,

We are providing two types of one services i.e. one is providing tankers to Indian Oil Corporation for transportation of petrol/diesel. These tankers are provided for supply of product to our own petrol pumps. Although it is a taxable service under GTA but service tax is being deposited by IOC. So we do not do anything in this regard. Total amount of service provided is app. 28.00 lacs.

Secondly we have one Maruti Service Station and annual receipts are around 6.50 Lacs. Which is very well below the exemption limit.

Now query is whether both these services will be combined for looking into exemption limit.

Rajesh Singal

9417161882

AI Summary

Exclusion of recipient-paid service tax: GTA receipts not counted for exemption threshold; file reply if challenged.
Amounts received for GTA services for which the recipient is liable to pay service tax are excluded from the aggregate value when determining entitlement to the small-value exemption; therefore GTA turnover where tax is paid by the recipient is not to be clubbed with receipts from other taxable services for assessing the exemption threshold, and if a show-cause notice is issued the assessee should file a reply and pursue adjudication and hearings.