Service tax credit utilisation against the GTA service

This query is : Resolved

Hiren Parikh (Querist)
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19 March 2009 We are manufacrurer cum trader in hydraulic equipments and also provide some technical, repairs, training services etc. taxable service.

As a company assessee, we have to pay service tax on outward freight.

We are taking service tax credit on all the invoices whether it is for production or sales.

Can we utilise such credit against the payment of service tax on GTA for outward freight?

Shyam Lal Naik

Shyam Lal Naik (Expert)
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19 March 2009 You can not.

GTA service has been excluded from the purview of Output service wef. 01.03.2008 ammending Rule 2(p) of Cenvat Credit Rules, 2004.

Cenvat can be utilised only for discharging liability against Output services.