Goods Transport Agencies

[Arun Shewale]

can we take a benifit which is paid service tax on GTA.

[Brijesh Verma]

Dear Arun Ji,

Positively, if you are a manufacturer or Service Provider and have a further liability to pay duty or tax and are paying tax on GTA under reverse charge as an Input Service, definitely you can take Cenvat Credit of this tax.

[rishi mohan]

In the case of services provided by a goods transport agency (GTA), the recipient of such a service is liable to pay service tax thereon, on a reverse charge basis. The credit eligibility of service taxes paid on GTA services, states that the tax paid by the recipient of such services is eligible as input credit in the hands of the recipient.

[Snehal Kulkarni]

May please refer the Circular no 97/8/207-S.T. dated 23-08-2007.

Hope this will resolves your doubt.

AI Summary

Input credit for reverse-charge GTA services permitted when recipient is liable to pay service tax under reverse charge.
Recipients liable to pay service tax on goods transport agency services under the reverse charge mechanism may claim the service tax paid as Cenvat Credit or input service credit, provided they are manufacturers or service providers with further duty or tax liability; Circular No. 97/8/2007 is cited for guidance.