Service tax exemption for transportation of life saving medicines, Service Tax

[frankling g]

Any service tax exemption for GTA for the transportation of life saving medicines between military hospitals.

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

According to Sl. No. 21 of mega exemption Notification No. 25/2012-ST dated 20.6.2012 as amended only services provided by a goods transport agency, by way of transport in a goods carriage of

(a) agricultural produce;

(b) goods, where gross amount charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;

(c) goods, where gross amount charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred fifty;

(d) milk, salt and food grain including flours, pulses and rice;

(e) chemical fertilizer, organic manure and oil cakes;

(f) newspaper or magazines registered with the Registrar of Newspapers;

(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or

(h) defence or military equipments;

(i) cotton, ginned or baled.

is exempted. Life saving drugs do not find a place in the above list. Therefore service of transportation of life saving drugs by GTA is not exempted.

[KASTURI SETHI]

I endorse the views of Sh.Ranganathan, Sir.

[Ganeshan Kalyani]

Sir, to the point reply submitted by Sri Rajagopalan Sir. Just a curiosity why transportation of life saving drug is not exempted from service tax? Thanks.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

You are right. Other day-to-day items have been exempted. Life saving drugs should be exempted from ST for transportation.