9.3 Whether it is compulsory for a recipient of GTA service to take registration for service tax? Yes, if reverse charge is applicable, service recipient becomes liable to pay service tax and section 69(1) of the Act mandates that every person liable to pay tax shall obtain service tax registration.
Is GTA liable to register under service tax?
In case of GTA, a person liable to pay the freight for the transport of goods has also been made liable to pay service tax. In case, the person liable to pay freight is in a non-taxable area (Jammu & Kashmir), the person liable to pay service tax would become the service provider.
Who is exempt from service tax?
Small service providers whose total turnover value of all taxable services provided by them is not more than Rs 10 lakhs over the course of a financial year are eligible to avail of service tax exemptions.
Is GTA liable to pay GST?
Only services provided by a GTA are taxable under GST. Services of transportation of goods by a person other than GTA are exempt. … In all other cases where GTA service is availed by persons other than those specified, the GTA service supplieris the person liable to pay GST.
Is service tax applicable on transport services?
Taking into account the special nature of the goods transport agency (GTA) service, it is being exempted from the payment of service tax unconditionally to the extent of 75% of the freight. In other words, service tax is required to be paid only on 25% of the freight irrespective of who pays the service tax.
What if GTA is registered under GST?
Only services provided by a GTA are taxable under GST. … The GTA service supplieris not entitled to take ITC on input services availed by him if tax is being charged @ 5% (2.5% CGST + 2.5% SGST). In case the GTA service supplierhires any means of transport to provide his output service, no GST is payable on such inputs.
What goods are GST exempted?
Exempted Goods in GST exemption list
- Food. Fruits and vegetables, cereals, meat and fish, potatoes and other edible tubers and roots, tender coconut, tea leaves, jaggery, coffee beans, ginger, turmeric, milk, curd, etc.
- Raw materials. …
- Tools/Instruments. …
Are doctors liable for service tax?
a) The amount booked under “collection charges/facilitation fee” of doctors is not liable to service tax under Business Support Service. In terms of Section 65(104c) of the Finance Act, 1994, doctors are not “business entities” and are not engaged in a business or commerce.
What happens if service tax is not paid?
If an assessee has not filed his or her service tax return for more than 30 days following the expiry of the prescribed deadline, then a late payment fee of Rs 1,000, along with an extra charge of Rs 100 for every additional day of delay in excess of the initial 30 days, will be charged.
Who will pay GST on GTA services?
Notification No. 13/2017- Central Tax (Rate) dated 28.06. 2017 notifies the category of services where GST is to be paid under RCM by the recipient of services. Therefore, the recipient of GTA services shall be liable to pay GST under reverse charge.
What happens if GTA is unregistered?
** GTA services to an unregistered person is exempted as per Notification No. 32/2017- Central Tax (Rate) dated 13th October 2017. However, this notification is cancelled as of 31st Dec 2018 and hence, tax must be paid under RCM for unregistered purchases on the notified list of supplies.