Central Government vide Notification No. 45/2016-CE (N.T.) dated 20.09.2016 has amended Rule 9 of CENVAT Credit Rules, 2004 and provided that the requirement of enclosing photocopies of the railway receipts (RRs) with the STTG certificate, as a document for availing CENVAT credit has been done away with. Only a Service Tax Certificate for Transportation of goods by rail issued by the Indian Railways would suffice for claiming the credit.
Further, Central Government vide Circular No. 1048/36/2016-CX, Dated: September 20, 2016 has prescribed the detailed procedure for availing CENVAT credit of service tax paid on transportation of goods by rail.
F. No. 267/09/2016-CX.S
Government of lndia
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Circular No. 1048/36/2016-CX
New Delhi, dated the 20th September, 2016
The Principal Chief Commissioners/ Chief Commissioners/Principal Commissioners of Central Excise (All)
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners of Central Excise & Service Tax (All)
Sub: Service Tax Certificate for Transportation of goods by Rail (STTG Certificate) reg.
Kind attention is invited to Notification No. 45/2016-CE (N.T.) dated 20.09.2016 wherein clause (fa) in sub-rule (1) of rule 9 of CENVAT Credit Rules, 2004 has been substituted and the requirement of enclosing photocopies of the railway receipts (RRs) with the STTG certificate, as a document for availing CENVAT credit, has been amended such that railway receipts would not be required to be enclosed with the STTG certificate. The following procedure is hereby prescribed for availing CENVAT credit of service tax paid on transportation of goods by rail:
i) The STTG Certificate shall be issued to rail customer (consignor/ consignee, whosoever makes the payment of Service Tax) by the Railways for the purpose of availing CENVAT A proforma containing the format of STTG certificate to be filled by the consignor/ consignee is enclosed herewith as Annexure-A.
ii) The STTG certificate shall capture various details such as name of the customer, no. of RRs issued , total service tax/ cess paid , Service Tax code, registration no., details of the certifying authority from railways etc.
iii) The STTG certificate shall also contain details of RR(s) in a tabular form annexed to the STTG certificate (enclosed as Annexure-B). The details shall inter alia include RR number, date, name of the consignee, freight, service tax/ cess paid The said list of RR(s) shall be certified by competent Railway s Authority.
iv) In cases where the Service Tax is paid by the consignor and he intends to avail the CENVAT credit, he may avail the same on the strength of the STTG certificate issued in his name in the format prescribed above.
v) In case if the Service Tax has been paid by the consignor but CENVAT credit is to be availed by the consignee, who is eligible for such credit as per the rules, the consignor shall make a written request to Railways for issue of consignee-wise STTG certificate duly indicating the RR details pertaining to the consignee in the format prescribed The competent Railway Authority shall issue the STTG certificate accordingly, even though it will require issuance of more than one STTG certificates to the customer (consignor) for a particular month. The consignor shall transfer the consignee-wise ‘STTG certificate’ in original to the consignee concerned. The consignee may avail the CENVAT credit on the strength of this certificate.
vi) Where a consolidated STTG Certificate has been issued in terms of clause (iii), no STTG Certificate consignee-wise in terms of clause (v) shall be issued and vice versa.
2. Difficulty faced, if any, in implementing the circular should be brought to the notice of the Board.
Hindi version will follow.
Under Secretary to the Govt. of India
a) STTG CERTIFICATE (Annexure-A)
b) RR Details (Annexure-B)