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Aggregate Turnover for 33/2012 ST, Service Tax

Issue Id: - 116741
Dated: 27-9-2020
By:- Krishna Murthy
Aggregate Turnover for 33/2012 ST

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Sir, As per NN 33/2012 ST (SSI Notification) taxable services to an extent of ₹ 10 Lakhs is exempted from Service Tax. As per NN 26/2012 ST (Abatement Notification) also exempts Service Tax over and above the percentage mentioned there in. For example Services of GTA is taxable to an extent of 30% and remaining is exempted. NN 26/2012 clearly exempts 70% of the gross receipts.

The query now is if GTA gross receipts is say ₹ 30 Lakhs who is liable for forward charge alone, whether whole amount is considered as aggregate turnover for NN 33/2012 or only ₹ 9 Lakhs (30% of ₹ 30 Lakhs) is considered as aggregate turnover for NN 33/2012.

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1 Dated: 27-9-2020

Dear Krishna Murthy Ji,

Answer in short is ₹ 9 lakhs. The person will apply for registration as and when its turnover exceeds 9 lakhs and not avail the benefit (threshold exemption) of ₹ 30 lakhs.The amount of abatement will not be deducted in determining the aggregate value.

You have intermingled the concept of 'abatement' and 'threshold exemption limit' for small scale service providers.Both are not correlated at all.

1. The question of availing abatement from the gross receipt arises only after getting registration of Service Tax. It is very much clear and not deniable. A person who is not registered with ST department by virtue of the whole exemption or value based exemption cannot avail abatement, that person being unregistered.

2. For registration purpose one will apply for ST registration certificate after crossing ₹ 9 lakhs.

3. As per notification No. 33/12-ST dated 20.6.12 as amended, if ST on freight is paid by service receiver under RCM, that value will be excluded from the aggregate turnover to arrive at threshold exemption limit of ₹ 10 lakhs. See para no.3 of the notification.

An illustration :

Suppose P & L Account of GTA shows the following gross receipts in the preceding year:-

(A ) Amount received for which ST is payable by the consignor or consignee : ₹ 30 Lakhs

(B) Amount received for which ST is payable by GTA : ₹ 8 lakhs

Total ₹ 38 Lakhs

Only ₹ 8 lakhs will be considered and the GTA shall be eligible for small service (scale) provider exemption.

Note : It is again mentioned that the amount of abatement will not be deducted in determining the aggregate value.


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