The following services provided in relation to transportation of goods are specified in the negative list. Services:-

•  by road except the services of (i) a goods transportation agency; or (ii) a courier agency

•  by aircraft or vessel from a place outside India to the first customs station of landing in India; or

•  by inland waterways.

Are all services provided by goods transport agency excluded from the Negative List?

Yes. However, there are separate exemptions available to the services provided by the goods transport agency. These are services by way of transportation of –

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

•  goods where gross amount charged on a consignment transported in a single goods carriage does not exceed one thousand five hundred rupees; or

•  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.

Are goods transport agencies liable to pay tax in all cases or are provisions relating to reverse charge also applicable after introduction of negative list?

The provisions relating to reverse charge, i.e. service tax is liable to be paid by the consigner or consignee in specified cases, are applicable even after the introduction of negative list.

Are the following services of transportation of goods covered in the negative list entry?

Nature of service relating to transportation of goods Whether covered in the negative list entry?
By railways No
By air within the country or abroad No
By a vessel in the coastal waters No
By a vessel on a national waterway Yes
Services provided by a GTA No

Are services provided as agents for inland waterways covered by this entry?

No. these are in the nature of services used for providing the negative list entry service of transport of goods on inland waterways and would not be covered by application of the rule for interpretation where services are specified by way of description contained in clause (1) of section 66F of the Act. (For guidance on this rule please refer to Principles for interpretation of specified descriptions of services )

If transportation of goods takes place from Delhi to Jammu by road then how would the taxability of such transportation be determined considering that Jammu is located in at a place outside taxable territory?

Guidance Paper: GPB on Place of Provision of service.

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May 2021