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.

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More Under Goods and Services Tax

139 Comments

  1. Ramakrishna says:

    I have a scrap business and i have loaded the my scrap from my godown to factory(interstate). and the lorry person do not provide any bill to me everytime. i have paid him through my firm bank account amount 50000. does i need to pay RCM on that…
    please help…

  2. Vikas Gandotra says:

    I am registered under GST as firm.
    Now If have taken a contract from Govt. Department for providing Load Carrier for Transportation of machinery from one place to another place, is such service taxable under GST.
    If Yes then under which SAC code & rate of GST on it, Please revert.

  3. Akhil says:

    Sir,
    One of my client have two tempo he wants to take gst no. His turnover not more than 20lakh can I take gst no. If yes than in which sac code I apply for the same, he also have cleaning services, so I can take one gst no for both service?

  4. Imran khan says:

    I have a scrap business and i have loaded the my scrap from my godown to factory(interstate). and the lorry person do not provide any bill to me everytime. i have paid him through my firm bank account amount 50000. does i need to pay RCM on that…
    please help…

  5. Virendra Sawant says:

    If Material ls lost by the transporter and if we want to debit Transporter for the loss. Whether we need to charge GST on the debit note? and what will be the SAC code and GST rate?

  6. Varun N Rao says:

    Dear Sir,

    I supply handmade products to my end-customers who use it for their personal purpose. They are located in another state and I have to courier them for which I charge them the actual courier charges along with the product + IGST rates. In the invoice that I send to them, should I also be mentioning the courier charges with the gst breakup?

    Please englighten me.

    Thanks,
    Varun N Rao

  7. pramila says:

    If freight forwarder located in India offering services to a customer located outside India for arranging third country sea/air shipment. i.e shipment is not coming physically to India and both the buyer and seller of the shipment are located outside India. Will this service by freight forwarder is taxable under GST ?

  8. rovan says:

    I have recently shifted household goods from Hyd to Bangalore through Packer and Movers. GST was charged on Value of goods shipped. Is it correct? Any valid docs for this?

  9. NETRA PALLAB PAUL says:

    IF I DELIVERED A MATERIALS WITH LOCAL MOTOR VAN AND PAY FOR THAT AS FREIGHT. THEY HAVE NO BILL. I PAY JUST IN VOUCHER. IS IT UNDER ITC. HOW DO I CLAIM REVERSE CHARGES IT.

  10. Roshan says:

    Sir,
    I am in Haryana and bill to Karnatka Party,s, I charged freight on bill with GST goods fall in 18% & freight also charged at the same rate. Boths are registered dealer. My questions is the time of payment of freight to transporter is applicable under RCM or not.

  11. anil sharma says:

    IF TRANSPORTER HAVE PROPRIETRY FIRM OR PARTNER SHIP FIRM CAN THEY AVAIL IN PUR CREDIT FOR THERE EXPENSES LIKE INSURANCE, TYERS , REPAIRS ETC. IF THEY ARE TAKEN REGISTER WITH GST AND FILLING NILL RETURN

  12. Abhiram Mishra says:

    Dear Sir
    We are Purchase goods from AP from a registered dealer and charged IGST. But the goods transporter is an unregistered dealer.
    What is the tax system and whether we are allowed for revers charge?
    Kindly suggest.
    Thanking you with regards

  13. Muruli krishna says:

    Dear sir
    We purchase materials from Chennai to Bangalore by transporter, but he is not charge GST on transport charges. But he registered under GST at tamilnadu,

    He says not required GST In bill,

    Please give clarification GST required or not?

  14. DEEPAK AGARWAL says:

    HIII MAM
    MAM MY FIRM IS REGISTERED IN HARYANA UNDER GST BUT FIRM PROVIDE GOOD TRANSPORT SERVICE FROM MP TO MP I.E GOODS LODED FROM MP AND UNLOADED ALSO IN MP SO WHAT WILL BE TAX IMPLICATION

  15. karnik says:

    I am exporter of agriculture product and received transportation service.in this situation can i pay RCM on behalf of register transpiration

  16. arvind singhal says:

    Transporter from A state delivers the goods to B state bearing office in B state also and registered with proper registration and the service receiver is also registered, the freight charges are less than Rs 5000,so please assist me what will be impact on RCM in both cases RsRs 5000. With thanks.

  17. PANKAJ BANSAL says:

    if i purchase some goods from gujarat to punjab for my firm and these goods are to be delivered by a GTA and the freight amount is less than 750,then in that case can i have to pay GST under RCM or not?

  18. PANKAJ BANSAL says:

    if i purchase some goods from gujarat for my firm and these goods are to be delivered by a GTA and the freight amount is less than 750,then in that case can i have to pay GST under RCM or not?

  19. sunil bansal says:

    we r buy goods Ludhiana (punjab) to hisar(HRY.) & Transporter not registerd GST Number We Paid Freight Hisar
    Kindly tell me slab of GSTand abatment
    for goods transportation by road.

  20. ABHI says:

    Dear Madam/Sir,

    Kindly resolve the following query in case of GTA – Road Transport

    A GTA is issuing consignment notes on its consignments. The GTA supplies service ONLY to a GST registered company(the Consignor) who will pay their GST – 5% under RCM or 12% if the GTA charge them on the Invoice.
    When the GTA is making supply, it uses other GTAs (call it sub-GTA’s) to supply goods booked by the GTA. The sub-GTA issues a consignment note for the goods it has booked from the GTA. So, there would be 2 GR’s (consignment notes) for the same consignment and 2 GTA’s (by road) used for making this transportation.
    Further,
    1. The GTA will be raising bills to the registered company
    2. The sub-GTA’s [who are also issuing GR] raise bills to the GTA.
    3. The GTA receive payments from the registered company and make payments to its sub-GTA’s and the difference goes to the profit of the GTA.

    My query 1:- Which would it be a right practice

    1. The registered company, to whom the GTA is raising bills and issuing consignment notes, pays 5% under RCM and the GTA does nothing wrt the service taken by other GTA’s in his GSTR.
    OR
    2. The registered company pays 5% under RCM and the GTA gets an INPUT GST on it which can OFFSET the 5% tax the GTA need to pay under RCM towards services of GTA taken to do my own GTA work. And the same can be shown accordingly in the GSTR returns.
    OR
    3. The GTA charges 12% from company on the bill raised by GTA to registered company (the consignor) and deposits the same after deducting [claiming input] of the amount paid [5% RCM on bill raised by sub-GTA to the GTA or 12% if the sub GTA charges 12% on his bill as the case may be.]
    I understand that input by the GTA can be taken Strictly on the expenses incurred towards the GTA operations only and not something else.

    My query 2.:-
    In the above case, my GR has Consignor as the Registered company and consignee as the reciptent of the goods.
    What should the sub-transport mention the Consignor as. (to relate the 2 consignment notes (GR’s), that it pertains to the same consignment.

    My query 3:-
    Can GTA and Commission work in the same firm? Transport Input shall STRICTLY Not be availed in other things.

    KINDLY HELP IN RESOLVING THE ABOVE QUERIES

  21. Inder says:

    Sir if a GTA charges GST at 12%. What input tax credits are available?
    We end up paying GST on the following purchases
    Tyres, Spare parts, New trucks, tank body manufacture & other cost inputs to conduct our business.
    Can we take ITC on 28% GST paid for new trucks even if we claim depreciation.
    I need to know if shifting to 12% slab and claiming ITC is beneficial compared to 5% slab & availing no ITC. Thanks!

  22. dinendrasharma3@gmail.com says:

    i am registered dealer under gst,i am supply construction Martial,i take transport service in unregistered transporter inter state,please suggest me what tax applicable rate & availability of ITC

  23. dinesh kabra says:

    Sir we are trader sales of agriculture product like wheat gram soyabeen etc 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 ?

  24. Pradeep Sharma says:

    we are a traders we have purchases goods inter state by road transport. but transporter not maintion GSTIN in bilty and not charges in gst ? We will pay tax ?
    If we will purchase goods inter state without freight paid its possible

  25. R.K.DUA says:

    MYSELF R K DUA
    WE R MANUFACTURER AND TRANSPORTER IS NOT PROVIDING INVOICE SO CAN WE RAISE RCM INVOICE WITH 18% GST AFTER THAT CAN WE CLAIM 18%GST PAID IN RCM BILL PLEASE REPLY SOON
    THX

  26. 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.

  27. 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.

  28. 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%

  29. 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.

  30. B L SAINI says:

    Sir

    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%

  31. 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

  32. 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

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