Service tax GTA Payment Credit

[MUNIRAJ SRINIVASAN]

Dear Sir,

GTA Payment of Service tax Inword and outward charges , we can take input credit both

 

[rishi mohan]

the Cenvat Credit is very much available but one cannot utilize the same in paying the tax on GTA Input service. As per law, the tax under reverse charge mechanism (such as GTA, foreign commission etc.) has to be paid in terms of money only and not by credit.

[CASeetharaman KC]

Cenvat credit can be taken, but payment of service tax under reverse charge mechanism needs to be settled in Cash only.  Cenvat credit cannot be used to make this payment

[YAGAY and SUN]

There is no restriction on availing CENVAT credit on GTA which pertains to inward freight but on outward freight it will be available only up-to to the place of removal.  Further, for exporting of goods you may also avail the exemption as mentioned in the Notification No. 31/2012-ST.

AI Summary

CENVAT credit on GTA services allowed, but reverse charge service tax must be paid in cash.
CENVAT credit on Goods Transport Agency services is available for inward freight; outward freight credit is limited to the place of removal, and exporters may rely on the export exemption in Notification No. 31/2012 ST. Liability to pay service tax under the reverse charge mechanism, including for GTA services, must be discharged in cash and cannot be satisfied by using CENVAT credit.