Exemption of service tax on GTA (Export) - Professionals - Taxation - TIK Share
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Exemption of service tax on GTA (Export)

Mukesh Jain CA


Service provided by way of goods tranport in relation to exports is exempt from service tax. The exemption can be claimedd in accordance with notification 31/2012 of service tax. The detailed procedure to claim the exemption is specified in this notification. 

The exporter shall have to produce the consignment note, by whatever name called, issued in his name. Further the exporter should use form EXP 1 to inform the Assistant director of central excise to claim the exemption & then the exporter needs to file form EXP 2 to claim the exemption. Form Exp2 needs to be filed half yearly ie., after 15 days from the end of the relevant half year.

Please place your comments on the above & the practical difficulties being faced on this ?

CA Pulkit Sharma


Practically its a pain to follow these, but we have to.

I beleive the solution lies in enabling e-governance in these issues too. Just like how VAT department has done by enabling E-Sugam.

The service provider can generate something like forms and enable the service receiver to classify them as form EXP1 or available forms.

Chanakya said "Tax should be collected, how Bee collects honey from flowers". But in India it does not seem to work.

A lot of procedurial complainces makes it difficult for small businesses to spend the resourse on these non-value addition activities.

India the biggest software hub (atleast developing for others), should take advantage of its software engineers and put everything online.

By going online the physical visits at department will be lower and to a greater extent the ion will be lowered.


Mukesh Jain CA


I agree that it is very painful to claim exemption in these cases since there are many practicul diffficulties like eg: a. Many lorry drivers does not give proper bill or consignment note b. Few have not yet taken pan, service tax registration. c. The Asst commissioner who deals with these kind of issues will ask you many kind of documents to be produced to prove the claim.