Availability of cenvat credit in GTA services

[Guest]

can service user of goods transpor agency services can take service tax credit

[VINOD KUMAR SHARMA]

A user of goods transport agency is not entiled to take credit of service tax . Under the service tax rules the service receiver in respect of goods transport service is not entitled to take the benefit of service tax credit.

[Guest]

In my view If the goods transport service is availed for inward transportation of inputs / capital goods, then service tax credit may be taken but if it is used for transportation of finished goods from place of removal the credit is not allowed.

[sudhir V S]

GTA service receipient can avail the CENVAT credit and can be used for the payment of other taxable service or ED. but utilization for the payment of GTA laibility may not be possible.

AI Summary

Cenvat credit eligibility for goods transport agency services depends on use for inputs or capital goods versus finished goods transport. Availability of CENVAT credit for goods transport agency services is contested: one position denies service receivers any credit; another permits credit when the service is for inward transportation of inputs or capital goods but disallows it for transport of finished goods; a third position allows availing CENVAT credit for other taxable services or central excise duty while restricting its use to discharge GTA liability.