Transportation has very important role in civilization of human beings and the development of a country. Transportation of goods has a vital part in development of a business. Availability of raw material, packing material and plant and machinery from different part of the world and making the finished goods available to the customer in different part of the world depends upon the transportation system. Goods become cheaper and expensive depending on the transportation cost. To keep this mind, government has given separate rates of transportation of goods and some of the transportation of goods are exempted from GST.

Goods are transported by using three means of transportation:-

1. By Air

2. By Water

3. By Road

  • Rail
  • GTA
  • Other modes

1. Transport of goods by Air

S. No. Particulars Whether taxable or not under GST? Tax rate
1. Within India Yes 18%
2. From India to outside India Yes 18%
3. From outside India to India Exempt  Service Exempt Service

2. Transport of goods by water

S. No. Particulars Whether taxable or not under GST? Tax rate
1. Within India (inland waterways). Exempt  Service Exempt Service
2. From India to outside India. Yes 18%
3. From outside India to India Exempt service.


1.     Service provided by a person located in non taxable territory.

2.     Services provided to a person located outside the taxable territory.

3.     Transportation of goods is done in a vessel.

Exempt service.


1.     Service provided by a person located in non taxable  territory.

2.     Services provided to a person located outside the taxable territory.

3.     Transportation of goods is done in a vessel.

3. Transport of goods by Road

S. No. Particulars Whether taxable or not under GST? Tax rate
1. By rail other than container. Taxable 5% with ITC on input service.
2. By rail in container Yes 12% with ITC on input service.
3. By Goods Transport Agency Yes 5% with NO ITC.
4. Services of goods by courier agency Yes 18% with ITC credit.
5. Other than Rail, GTA and courier agency. Exempt Service Exempt Service

What is Goods Transport Agency:- means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.


Services by way of transportation by rail or  a vessel  from one  place  in India to another  of  the following  goods –

  • relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap;
  • defence or military  equipments;
  • newspaper or magazines registered with the Registrar of  Newspapers;
  • railway equipments or materials;
  • agricultural produce;
  • milk, salt and food grain including flours, pulses and rice;  and
  • organic manure.

Services provided by a goods transport agency, by way of transport in a goods carriage of,-

  • agricultural produce;
  • 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;
  • goods, where gross amount charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred fifty;
  • milk, salt and food grain including flour, pulses and rice;
  • organic manure;
  • newspaper or magazines registered with the Registrar of  Newspapers;
  • relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or
  • defence or military equipment’s;

Reverse Charge in case of GTA:- Normally a service provider is required to pay taxes, but in case GTA provides the services to the following persons, recipient of services is required to pay GST under reverse charge:-

  1. any factory registered under or governed by the Factories Act,1948;
  2. any society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India;
  3. any co-operative society established by or under any law;
  4. any person registered under CGST/SGST/UTGST Act;
  5. any body corporate established by or under any law; or
  6. any partnership firm whether registered or not under any law including association of persons;
  7. casual taxable person.

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101 responses to “Transportation of Goods under GST”

  1. R.K.DUA says:


  2. KAMARAJU says:

    Sir, we are registered with gst as GTA. For July period we have done business as GTA for Rs. 30 laksh. My question is that while we filing the GSTR 3B , should turn over be mentioned ? and at what head we have to mention? ( taxable services or exempted services.

  3. 9359103571 says:

    Sir, we are book publishers and need to send books on regular basis to our dealers throughout India through toad transport. Please let us know the name of documents which we need to give to transport agency while booking consignment. Also specify, is it necessary to provide the GST no. of our party (recipient). Is it necessary to write HSIN code of our product on the documents, we provide to transport agency.

  4. Shridhar Chavan says:

    Under the gst act government has given exemption upto rs.5000 in RCM… Is transport included in the exemption?

  5. Anish Singh Ashok Pratp says:

    Dear Sir

    My Company is GST registered. I have one transporter (Transport is indu & Unregistered, turnover is less than 4 lakh ) bill received by road without consignment note (this transporter using daily basis – inward & outward suppliers), but bill arising monthly. GTA Applicable or not. If applicable, then rate how much 5% or 18%

  6. Raj Das says:

    Sir i am a tranporter. My annual turnover is more than 20 lakh. I transport industrial good within west Bengal. Please tell me which rate of gst chargeble in the invoice to the party. For fare charges.

  7. B L SAINI says:


    We are a Customs house agent, but we are provide transportation services for my client, we are not follow GTA rule, then we can charges GST in our bill 18% or 5%

  8. Ashok Mehta says:

    3. By Goods Transport Agency Yes 5% with NO ITC. we are reg dealer under GST Please let me know the HSN Code By Goods Transport Agency and posted under which category.

    Ashok Mehta

  9. Rakesh Choudhay says:

    Sir we are in jewellery business. We hire indivisual person who courier /transport ornaments from manufacturers /wholeseller to retail shop within state and out of state also. The person who couriers or transport the ornaments mainly travels by train and charges amount on consignment to consignment basis. So what will be impact of this expenses in GST

  10. D. shah says:

    Dear sir,

    we are in chemical business. we are doing export by air. Exporter charge freight charges on export. GST on freight is refundable of not pls reply.

    • Sudeep Paymode says:

      I Am a trders (Prorpitorship firm) of De Oiled Cake and raw material of cattele feed the GST is exempt on these material. but i am paying freight to transporter. then any liability of RCM at me. if Yes then howmany percentage.

  11. Shivam Poddar says:

    i m a transporter and if i want to charge GST from my companies and if my companies are also ready to pay me GST am i allowed to do that, for example A is providing transportation full truck load service to B for 100 Rs can all bill basic rate 100 Rs and GST 5 Rs into total 105 Rs he collects 105 Rs from B and then pays 5/- Rs to Goverment

  12. Basant says:

    Sir can i add in bill packing and forwarding charge but i am not paying to any one of packing and forwarding charge
    Or should i mention directly sell rate?

  13. Mayank Agrawal says:

    Suppose i deducted RCM for goods transport agency and RCM transaction is allowed for input credit although there is negative list which disallow a input on transport of goods, Now my question is i m eligible of input credit on above mentioned RCM or not ?

  14. Karthik says:

    i received one bill from transporter on 10.7.17 but bill date was 30.6.17 and service tax mentioned. i m also service tax returned in website. now how to account into tally ??

  15. raj shah says:

    sir , i have wanted to know that party have been purchase sand with royalty of rs.4000 by their own truck, ok, then they put this sand on their business premises,and then after they sold out it by tractors and retails , so should we apply for the gst??????? and which kind rate of our tax liability????and may party sale this sand by provisional challan????? and after they shall make bill after transaction????

  16. RENNY STEELS says:

    we are manufacture of iron & steels,our gst rate is 18%,what is rate of tax on freight outward when will mention separate in our sale invoice also confirm rate of tax to be pay in our inward freight.

    • SURESH DHURVE says:

      We are manufacturer of Plastics films and tape and GST applicable @18% . We want to collect freight charges from the customer. In invoice can we charged freight charges before GST or after?.

      • PAWAN KHANDELWAL says:

        If any amount you want to collect from customer than you need to charge GST over the same .

        You need add freight before GST and than

  17. RENNY STEELS says:

    we are manufacturer of iron & steel,what is about tax rate on freight when we will mention in separate in our sale invoice,tax is applicable or not & also confirm rate of tax in inward freight of our Raw material.

  18. VIMAL SINGH says:

    If buyer is unregistered in GST, & freight paid by buyer
    Then it’s compulsory freight will be charged on gsttax invoice by supplier.

    • sunil sharma adv says:

      Buyer is liable to be registered under u/s 24 of GST ACT. so it is the liability of the buyer to paid tax under reverse charge mechanism.

  19. Pavanputra Transport says:

    sir I am a transporter by road of raw limestone and dolomite minerals from mines head to steel factories where they are used for melting of iron ore and produce finished goods Now whether GST is applicable ? if yes, at what rate ? & who has to pay ?

  20. Hanif Modan says:

    Dear Sir
    We are manufacturer and materials supply to Electricity Board in all over India, we charged freight amount extra in Invoice.Have to pay GST on freight amount? Our materials GST rate 28%. we have to calculate GST 28% on freight amoun

  21. Hanif Modan says:

    Dear Sir
    We are manufacturer and materials supply to Electricity Board in all over India, we charged freight amount extra in Invoice.Have to pay GST on freight amount? Our materials GST rate 28%. we have to calculate GST 28% on freight amount.

  22. OM NATH says:


  23. Prabhjeet says:

    Service of transportation of plastic Bengals is exempted from GST or not ?

  24. Nishanth says:

    I have entered into a dealership agreement with courier agency and on a monthly basis i receive a commission from the agency. Do I need to register under GST.

    Can any one please help me in this issue..

  25. Sourab says:

    We are a logistic company and we ship used household goods within state.Is Gst registration is mandatory for us.


    Sir, We deal in Agricultural Seeds which is exempted from GST. Our clients are mostly end users, who cultivate Seeds purchased by us in their farms or field. Though we have registered with GST as we are trading interstate through out India. My question: Is the consignee GST registration is mandatory for movement through Road Transport/Courier of GST exempted Goods? As we have been asked by the transporters for the consignee GST. Without consgnee GSTIN they are not accepting to book tax free goods also. Your version required. Thanks

  27. RAJESH says:

    we are Exporters and Sending good to Custom for exports from Our office Via local Truck who charge 2500/- or 2000/-. Whether We are Liable to Pay GST on Reverse Charges and if So what will be the rate ?

  28. Karthik says:

    We supply goods to Various Industries. Even the Freight is paid by us (Consigner) to and Consignee are Pvt Ltd / Ltd.
    Now RCM applicable or not & GST 18% or 5% for Freight Paid By us

  29. Vinod Rai says:

    Section 12(8) of IGST Act states , the place of supply of services by way of transportation of goods including by mail or courier to –

    a) A registered person , shall be the location of of such person .

    b) A person other than a registered person , shall be the location at which such goods are handed over for their transportation.

  30. ranisati says:

    Sir we are manufacturer of Atta/MAida/Rawa Sooji which is under 0% GSt. and we supply our product all over india FOR means we pay freight to transport. as our product is under 0% GST, are we liable to pay GST on freight ?

    • GATUAM says:


    • Ankit says:

      Yes, taxability of goods and services are different things. Your product may be exempt but services taken by you are chargeable to GST and because RCM provisions are applies to these services the GST on GTA services has to be paid by you instead of Agency.

    • P.K.Sen says:

      Yes. At the rate of 18% liable to be paid by recipient of GTA service as 5% is not applicable for recipient of GTA service.

  31. Jayesh says:

    Suppose I am a Dealer in Goods. I have my own truck for delivery of goods to client places.
    Whether GST will be charged on delivery/transport charges charged by me from client?

    • lalit says:

      Sir,I am a cement trader. I arrange trucks from open market not from GTA and pay freight directly to the truck owner.The transporter has only 1 lorry and is not registered for gst. In this case can i make an invoice separately for cement and a separate invoice for lorry freight.further i have to adopt reverse charge mechanism for itc.

    • Nikunj Dave says:

      You are not required to charge GST on own transport as it will be covered under Exempt Service, because you are neither covered under GTA service nor Courier Agency.

  32. Pramit says:

    i accountant wanted to know the amount of minin. amount to by charge GST in transport Company

  33. Dinesh Aggarwal says:

    Sir i am a GTA, i transported a consignment of a vendor from Delhi to Dehradun. the billing address of the vendor is in Delhi. Then what type of GST is applicale is it CGST and SGST or IGST.


    I am Transporter, I am already registered in GST , Can I Collect GST from a Registered GST Delear

  35. Manak panwar says:

    I provide transportation Services of goods by road having two it mandatory to take registration for me.and what is rate of GST on this service.

    • Tejas Karnani says:

      sir number of trucks owned by you is not the criteria under GST for register & paying the tax, amount of receipts will be the criteria.
      kinly tell your receipts & nature of clients you provide service for

    • P.K.Sen says:

      You are not GTA if you are not issuing any consignment note and therefore not liable for registration. Even GTA is not liable for registration if entire transportation activity is undertaken on RCM basis.

  36. navneet says:

    Sir,I am a cement trader when I arrange tuck from open market not from GTA pays freight directly to the truck owner in this case any GST is applicable on freight?

    • Tejas Karnani says:

      sir please clarify who is the service provider & who issues bill to you for the service of transportation

  37. pankaj says:

    I m supplier to various corporates and still confused whether input credit for transportation is available to us or not if we pay 5% gst…..this gst under RCM shall be paid so shd it be 2.5% cgst and 2.5% sgst….further if we dont get input then when we bill our connsumer on landed price basis we shall ultimately be paying further 5% igst on transportation in inter state….thus paying 10% on transportation which is not logical

    • Tejas Karnani says:

      sir, according to my reading the gst paid under rcm will be eligible for itc & further on the same bill you are charging sgst,cgst,igst is not logical….pls clarify more of your case

  38. Sambandan says:

    Iam small transport commission agents canipaygstpleaseguid

    • Tejas Karnani says:

      what are your total receipts for the year & how you billed to your clients?

      • R Punia says:

        hi , i am a transport commission agent, i coordinate with both the parties i.e. goods owner and the truck owner, collects payment from goods owner and pay it to the truck owner keeping my commission share. i can not opt for presumptive tax schme u/s 44ae as i dnt own any truck, niether i can exercise schme u/s 44ad as i my income is of commission. do i attract gst as per GTA terms ? please assist

    • Manoj says:

      Dear sir
      my firm supply marble & granite slabs for example our supply value is 5000+Cartage is 500 to 5000 in this case Igst is @28% is charge on whole amount what gst code i mention for Cartage

  39. Thejas says:

    We are Coocking Gas (LPG) distributors for Public Sector OMC. If we deliver LPG cylinders out of ‘Free Delivery Zone ‘ and collect delivery charges for the same at the Govt. approved rates, is it taxable under present GST ? if GST is applicable, then what is the HSN code and rate to be charged ?

  40. Vinod says:

    Sir , i am a goods transporter and i transport goods in carriage by road and i take my commission for this service . My question is that who is liable to pay GST on carriage freight consigner or consignee or transporter ?

  41. Murugan says:

    If i am purchase a vessel for coastal cargo movement, 5% gst applicable on the CIF value.
    whether i can avail Input Tax Credit from the above paid GST

  42. BHAVIK says:



  43. CA Parvej Patel says:

    No ITC of 5% GST paid under RCM on GTA

  44. Sharad Jha says:

    Some Rumours come that Service Receiver can pay GST under Reverse Mechanism under Transportation by Road …Rumors come from Twitter

  45. Nalini says:

    Dear Sir,

    A dealer sends a swipe machine directly to bank Merchants & provide a service to them. The dealer here has a tie up with bank & get a rental from the bank for the services offered.

    Hence the dealer can’t provide the invoice direct to the merchants, they have a contract only with bank. In this situation pls., suggest in what way the dealer can ship the goods.

  46. Suresh Shanbogue says:

    When it is for exports how GST is applicable ?

  47. Rohit says:

    We supply goods to Various Industries. Even the Freight is paid by us (Consigner) to GTA and Consignee are Pvt Ltd / Ltd.
    Now Who will pay GST on Freight & how should we invoice for our Material

    • Tejas Karnani says:

      the person liable to pay freight is the receiver of GTA service as in your case as your company is liable to pay freight & the receiver i.e your company is liable to pay GST as the reverse charge is applicabnle in this case

      • Bitupan says:

        As a manufacturer, I have issued invoice inclusive of freight charges as per composite supply i.e. 18% GST, the recipient also paid the same.
        Now, the transporter(GTA) came to claim his freight charges from us, who is under contract with us to provide his service of GTA.
        While paying transport charges to the transporter, will we be liable to pay again 5% GST for the same consignment? (as the receipient had already paid on RCM)

    • Rahul Kakkat says:

      Yes i too want to know the same. How to invoice the clients if we pay the freight. Should we show separate freight charges or include the cost in the products price. If show freight in the invoice? is yes then should the value be the same as freight paid by me?? and what should be the tax rate?? Same as the product or what the transporter charged me??

      • Tejas Karnani says:

        sir i think if freight is paid by your company why to show the freight in the bill to customer, rather the transportation charges should be move to the p&l as as an expense if customer is not liable to pay freight.

        • aashish says:

          Generally transporatation is arranged by consingor and he adds transportation chrgs in bill to recover from it and some time also add some profit in transporting charges.What should be the GST?

  48. Rohit says:

    We are a transport company and we provide trucks to Our customers and take commission from tuck owners.
    what is considered as a turnover for a GTA, the commission received for the Total Freight Payable

  49. swapan gupta says:

    are you sure that transportation of goods by water from India to abroad are taxable @18% and coastal service is exempt. can you please send me from where i can conclude that transportation of goods by a shipping company from India to abroad is taxable @ 18%.

  50. Lalit says:

    Sir, I run a GTA and turnover is over 100 lakhs. Is it compulsory to take GST registration. The consignee pays the service take as reverse charge mechanism. DobI have to take registration.

    • NAVEEN says:


    • Tejas Karnani says:

      Exemption from registration has been provided to GTAs who are making only those supplies on which recipient is liable to discharge GST under RCM. In your case if the person providing GTA service only to the company then there is no requirement for registration irrespective of total value of supplies.

    • Tejas Karnani says:

      Exemption from registration has been provided to GTAs who are making only those supplies on which recipient is liable to discharge GST under RCM. In your case if the person providing GTA service only to the company then there is no requirement for registeration irrespective of total value of supplies.

  51. MD. YOUSUF says:

    A very good and informative article. One point is however not clear. In case service recipients of goods transport by roads are of the seven categories mentioned in the article , the liability to pay tax is on the recipient. But is it full reverse charge or partial reverse charge ? If partial reverse charge, then in what ratio.?

    • A Panchal says:

      In GST Regime there is no partial RCM. It was only earlier law of Servic tax. In GST 7 persons have to pay RCB @5% ant enjoy ITC.

  52. Richa says:

    If Service Recipient is required to pay GST under RCM, then. is GTA service provider required to take registration under GST?

  53. Rakesh says:

    i have an goods transport by road and my annual turn over is below 20 lac so please tell me is gst registration is mandatory.

    • Tejas Karnani says:

      if turnover is less than 20lakh registeration is not mandatory provided no interstate supplies made by you, which is quite orthodox in case of transport company.


    Kindly tell me slab of taxation and abatment
    for goods transportation by road.

  55. Anil Mithal says:

    Are you sure that GST will be charged on transport by air and water from India to outside India?
    These were not charged to service tax.

    • Tejas Karnani says:

      yes sir refer sec 7(1)(b) of cgst act in which defination of supplies includes importation of qservices made for a consideration wheather or not in the course or furtherance of business.

  56. Arun says:

    Dear Sir,

    Under What rate manufacture has to deposited under RCM on GTA


  57. Vinod says:

    Sir my question regsrding gsy
    IN 1993 HNY CJI GIVEN ITS VERDICT ON RICE DIHSKING ROLL AS A Part of rice mill.At thst time it sold under hsn code 4016.whete excise duty was 16%which was plsvef in 0%.
    After that people started importing rdrolls grom vietnam
    Under 8437 code.

    Now please tell us in which hsn cone we may sell this product diff of gst. 28 in 4016 & 5 in 8437

  58. C P darji says:

    Dear Sir,
    I have manufacturing unit and GTA is payable by me, My question is what is rate of RCM deposit by me on GTA, and can i tale ITC of this.

    • Tejas Karnani says:

      5% & yes you can take the itc of tax depsited by you under the reverse charge

      • CA Parvej Patel says:

        As per my reading ITC will not be available

        • Tejas Karnani says:

          With due repect sir,
          refer sec 9(3), in which it is mention that all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.

  59. Alkesh says:

    Sir, WHich time to be considered for RCM payment in case of GAT, i mean from receipt of goods or receipt of monthly invoice receipt of Invoice from Transporter? Any time limit for payment of RCM?

    • Tejas Karnani says:

      Earlier of the following:
      • Date of the receipt of goods; or
      • Date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or
      • Date immediately following thirty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier.

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