Services provided by Goods Transport Agency (GTA)

Reverse charge on Goods Transport Agency services: specified recipients must bear service tax liability under the recipient pays rule.

Reverse charge applies to services by a Goods Transport Agency for road transportation of goods when freight is paid or payable by specified recipients; the service recipient bears full tax liability while the service provider has no tax liability. Specified recipients include factories, registered societies, co operative societies, registered dealers of excisable goods, bodies corporate, and partnership firms (including LLPs). The payer of freight located in the taxable territory is treated as the service recipient. Statutory definitions of GTA, goods, partnership firm, and body corporate govern scope and application.