Service tax on goods transport by road has evolved over the years. Initially, it was imposed on goods transport operators but later shifted to goods transport agencies. The services provided by goods transport agencies were made taxable from 1-1-2005. The tax is applicable only on services provided by Goods Transport Agency (GTA) and not on all goods transport. The intention is to tax services provided by transport booking agents. The definition of 'goods transport agency' includes any commercial concern providing service in relation to transport of goods by road and issuing a consignment note. Individuals providing services are not considered commercial concerns unless they are a proprietary firm doing business on a commercial basis. Services provided by the government, charitable institutions, or non-profit organizations are not taxable as they are not commercial concerns. If a booking agent hires a truck from another trucker and sends it on his consignment note, the person who owns the truck is not liable for service tax. Small consignments below specified amounts and transport of specific goods like fruits, vegetables, eggs, or milk are fully exempt from service tax. The general rate of service tax is 10% plus 2% education cess, but the actual service tax payable is 2.5% plus 2% education cess of the gross amount charged from the customer for providing taxable service. The consignor or consignee paying freight is liable to pay service tax if they fall under specific categories. Only GTA which issues a consignment note is liable to show service tax on the invoice, but the payment is made by the consignor or consignee. Exemption from service tax is available for certain categories of consignments. The consignor or consignee paying service tax can avail Cenvat credit on the basis of the GTA's invoice. It is advisable to register under service tax if liable to pay service tax and follow the necessary rules and regulations for payment and credit of service tax.