12 June 2009
It is mandatory to pay ST payment for GTA through cash only w.e.f. 01-03-2008.
The GTA service has been excluded from the definition of Output Service. Cenvat Credit can be utilised towards payment of tax on output service only. Consequently, you can not the tax on GTA from Credit Balance of Service Tax Credit(Commonly known as Cenvat Credit).
14 June 2009
Yes input services credit cannot be used to pay the ST on input services. Only input services can be used for output services. About 2 years back the payments to GTA under reverse charge were deemed to be an output service in which period the same was eligible. Now this deifntion has undergone amendment.
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