TaxTMI 
TaxTMI 
TaxTMI 
Service tax on freight
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....ervice tax on freight<br> Query (Issue) Started By: - peter vicky Dated:- 13-9-2017 Last Reply Date:- 14-9-2017 Goods and Services Tax - GST<br>Got 9 Replies<br>GST<br>Dear Sir, I am the transporter of multiple goods inter-state,how should i collect service tax on consignment for ex: I Collect for one parcel 120 from the party for transporting charge, any amount is fixed to pay service tax expe....
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....rts please give ur views. Reply By Ganeshan Kalyani: The Reply: If you are a Goods Transport Agency (GTA) then you are exempt from registration. And you are free from collecting and paying tax to the exchequer. The consigner or consignee whoever pays the freight shall pay tax under reverse charge. Reply By Rajagopalan Ranganathan: The Reply: Sir, If you issue consignment note for transportin....
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....g the goods then you mare deemed to provide GTA Service and the reply given by Shri. Ganesan Kalyani hold good. However, Sl. No. (b) & (c) of Notification No. 11/2017-Central Tax (rate) dated 28.6.2017 states that " goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees. and goods,....
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.... where consideration charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred and fifty. Therefore you can take a decision regarding payment of gst on transportation of goods by road after taking into consideration the observations made above. Reply By KASTURI SETHI: The Reply: I support the views of both experts. Keeping in view the quantum of wo....
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....rk and inter state transportation of work, it appears to me your work is beyond the conditional exemption as detailed above. So be careful while claimg any kind of exemption under GTA. Reply By KASTURI SETHI: The Reply: Dear Querist (GTA), I further add that preference-wise liability for payment of GST on freight is as under:- 1. Consignee 2. Consignor \ 3. Any third person 4. Transpor....
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....ter (by road) If above three persons refuse to pay GST on freight, whatever may be the reason, GTA is legally required to pay GST on freight for transportation of goods by road. So your freedom from registration as well as GST liability is restricted. Your "degree of freedom" exists until or unless refusal by above three persons i.e. 1, 2 & 3. In other words, not full freedom. Reply....
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.... By Himansu Sekhar: The Reply: You are not exempted from paying tax if the service is not to a specified category. Assuming your turnover is above the 20 lakhs limit, single consignment above 750 and multiple consignments above 1500 leviable to tax. If the service is suppose to a propritorsip concern, you will pay the tax. Reply By Ganeshan Kalyani: The Reply: I agree with Sri Kasturi Sir's....
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.... view. Further, if you were to pay tax then there are two options with you. Either pay GST @5% without credit i.e. do not avail input tax credit on your inputs Or pay GST @12% and avail all input tax credit. Reply By KASTURI SETHI: The Reply: I agree with views dated 14.9.17 of both experts. Thanks for additional information. This is the all round benefit to the Querists. Reply By RAMESH PRAJAP....
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....ATI: The Reply: Excellent explanation by the experts. Really, The GOI has given very good option to GTA to avail ITC and pay tax. This will be beneficial for GTA and customer both. Reply By Ganeshan Kalyani: The Reply: Sir, i think the government by giving an option of input tax credit availability to the transporter, they are motivating unorganised sector (transporter) to participate in the ch....
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....ain of seamless flow of credit.<br> Discussion Forum - Knowledge Sharing ....