Transportation of goods by road are done by transporter or Goods Transport Agency (GTA) or courier agency. Unlike before, after Goods and Service tax (GST), there is only one tax rate which is common in all states for applicability of GST on freight on transport of goods. GST has not just created the uniformity but also helps in the seamless transportation across the country with the removal of multiple checkpoints and also helps in transparent documentation like e way Bill.
Requirement of GST Registration in India
Goods are transported by using three means of transportation:-
- Air
- Water
- Road- Rail, GTA or Other modes
All the Different modes of transport for transportation of Goods and there taxability is detailed below:
-
GST on Freight by Road
Goods carries through Road |
GST Rate |
| When GTA carries:
· Agriculture Products · Organic manure · Newspaper and magazines · Milk, salt, and food grains · Relief material for the victims of the man made or natural calamity · Military and defense equipment |
0% |
| When carrying goods on which consideration charged is less than Rs. 750 (in single consignee) |
0% |
| When carrying goods on which consideration charged is less than Rs. 1500 (In single carriage) |
0% |
| Other goods |
5% without ITC Or 12% with ITC |
| When goods carries through Courier agency | 18% with ITC |
| When goods carries through other than GTA or courier agency | Exempted |
14 Blocked Input Tax Credit (ITC) under GST
-
Rate of GST on Freight by Railway
When rail carries goods-
|
– Agriculture Products –Organic manure –Newspaper and magazines –Milk, salt, and food grains –Relief material for the victims of the man made or natural calamity –Military and defense equipment |
0% |
| Other goods in other than container. | 5% |
| Other goods by rail in container | 12% with ITC |
Updated List of Reverse Charge Mechanism (RCM) with Examples
-
GST rate on transport by sea
When goods carried through vessel :
| ·–Agriculture Products
–Organic manure ·–Newspaper and magazines –Milk, salt, and food grains –Relief material for the victims of the man made or natural calamity –Military and defense equipment |
Nil |
| Other –
Goods transported from a place outside India to custom station in India |
Nil |
| Goods transported within India | Nil |
|
Goods Transported from custom station to a place outside India |
18% |
GST on travel : Transport of passengers under GST Regime
-
GST on transport of goods by Air
When goods are carried through air-
| Goods transported from a place outside India to custom station in India | Exempted
|
| Goods transported within India | 18% |
| Goods Transported from custom station to a place outside india | 18% |
FAQ on Goods Transport Agency
-
Rate of GST on transport by Pipeline
| When goods carries through pipeline | 5% |
For any questions, you may reach us at Discussion Forum
The author of above article is CA Tarun Mulani. You can also submit your article by sending a mail to [email protected] or whatsapp us at 7024984925.
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