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:-
- any factory registered under or governed by the Factories Act,1948;
- 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;
- any co-operative society established by or under any law;
- any person registered under CGST/SGST/UTGST Act;
- any body corporate established by or under any law; or
- any partnership firm whether registered or not under any law including association of persons;
- casual taxable person.
Author Bio
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.
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
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?
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 ?
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 ??
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????
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.
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.
If buyer is unregistered in GST, & freight paid by buyer
Then it’s compulsory freight will be charged on gsttax invoice by supplier.
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 ?
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
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.
IS GTA IS REQUIRED TO REGISTER UNDER GST
Service of transportation of plastic Bengals is exempted from GST or not ?
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..
Sir,
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
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 ?
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
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.
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 ?
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?
i accountant wanted to know the amount of minin. amount to by charge GST in transport Company
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
Sir,
I provide transportation Services of goods by road having two trucks.is it mandatory to take registration for me.and what is rate of GST on this service.
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?
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
Iam small transport commission agents canipaygstpleaseguid
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 ?
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 ?
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
I HAVE A TRANSPORT COMPANY.
HOW TO GST APPLICABLE FOR REPAIR & MAINTANANCE AT SMALL GARAGE PERSON.
No ITC of 5% GST paid under RCM on GTA
Some Rumours come that Service Receiver can pay GST under Reverse Mechanism under Transportation by Road …Rumors come from Twitter
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.
When it is for exports how GST is applicable ?
sir,
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
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
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%.
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.
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.?
If Service Recipient is required to pay GST under RCM, then. is GTA service provider required to take registration under GST?
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.
Kindly tell me slab of taxation and abatment
for goods transportation by road.
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.
Dear Sir,
Under What rate manufacture has to deposited under RCM on GTA
” NO ITC IS FOR SERVICE PROVIDER or SERVICE RECEIPANT ?
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
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.
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?