Service Tax exposure on GTA

[MANOHAR KALBURGI]

Dear Sir/Madam,

We are proprietary firm and have received services from GTA and paid freight respectively. Since we are not covered in the above ‘specified category’, GTA should be liable pay service tax in this case. Who should be liable to pay service tax if GTA is unregistered?

Please provide me your valuable opinion this.

AI Summary

Reverse charge liability for goods transport services may fall on consignor or consignee; GTA pays if neither qualified.
Liability for service tax on GTA services turns on whether the recipient is within the notification's specified categories; specified recipients must pay under the reverse charge mechanism, while proprietary firms not listed are not liable. If GTA is unregistered due to small scale exemption, consignor then consignee are liable in priority; if neither are specified recipients the GTA pays under the forward charge. Registered recipients must register and discharge tax under reverse charge where applicable, and parties should verify and document consignor/consignee status.