Exemption from Service Tax on Services Provided by Goods Transport Agency

CA. Naresh P. Nahar

Serial No 21 of the Notification No 25/2012 dated 20.06.2012 provides for an exemption for services provided by Goods Transport Agency, by way of transport of goods carriage. The extract of clause, providing exemption as per Original Notification No 25/2012 dated 20.06.2012 (Applicable with effect from 01.07.2012) is narrated as under:-

21. Services provided by a goods transport agency by way of transportation of –

(a)  fruits, vegetables, eggs, milk, food grains or pulses in a goods carriage;

(b)  goods where gross amount charged for the transportation of goods on a consignment transported in a single goods carriage does not exceed one thousand five hundred rupees; or

(c)   goods, where gross amount charged for transportation of all such goods for a single consignee in the goods carriage does not exceed rupees seven hundred fifty;

The said clause had been subsequently amended by;

• Notification No 3/2013, dated 01.03.2013,
• Notification No 6/2014 dated 11.07.2014.
  

Amendment brought by Notification No 3/2013 dated 01.03.2013, (Applicable with effect from 01.04.2013), entire Clause was amended as :

21. Services provided by a goods transport agency by way of transportation of –

(a) Agricultural produce;

(b) goods, where gross amount charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;

(c) goods, where gross amount charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred fifty;

(d) foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages;

(e) chemical fertilizer and oilcakes;

(f) newspaper or magazines registered with the Registrar of Newspapers;

(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or

(h) defence or military equipments;”;

Amendment brought by Notification No 6/2014 dated 11.07.2014 , clause (e) was amended as;

“(e) chemical fertilizer, organic manure and oil cakes;”; instead of (e) chemical fertilizer and oilcakes;

Finally, vide Notification No 6/2015 dated 01.03.2015 (Applicable with effect from 01.04.2015), clause (d) of the Serial No 21 was further amended to read as;

“(d) milk, salt and food grain including flours, pulses and rice;”; instead of “foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages”;

Thus, at present (w.e.f. 01.04.2015), the clause “Serial No 21” of the Notification No 25/2012 dated 20.06.2012, as amended from time to time may be read as :-

“21. Services provided by a goods transport agency, by way of transport in a goods carriage of,-

(a) Agricultural produce;

(b) goods, where gross amount charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;

(c) goods, where gross amount charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred fifty;

(d) milk, salt and food grain including flours, pulses and rice;”

(e) chemical fertilizer, organic manure and oil cakes;”;

(f) newspaper or magazines registered with the Registrar of Newspapers;

(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or

(h) defence or military equipments;”;