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.

Conditions:-

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.

Conditions:-

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.

Exceptions:-

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.

Author Bio

Qualification: CA in Practice
Company: Goyal & Goyal
Location: Delhi, New Delhi, IN
Member Since: 17 Jun 2017 | Total Posts: 4

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Category : Goods and Services Tax (3414)
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Tags : goods and services tax (1971) GST (1555)

12 responses to “Transportation of Goods under GST”

  1. 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%.

  2. 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.

  3. 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.?

  4. Richa says:

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

  5. 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.

  6. DUSHYANT SHARMA says:

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

  7. 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.

  8. Arun says:

    Dear Sir,

    Under What rate manufacture has to deposited under RCM on GTA

    ” NO ITC IS FOR SERVICE PROVIDER or SERVICE RECEIPANT ?

  9. Vinod says:

    Sir my question regsrding gsy
    I AM A TRADER DEALING IN RICE MILLING MACHINERY AND PARTS
    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

  10. 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.

  11. 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?

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