Table of Contents
1. Do the services of transportation of goods by road attract GST?
- Mere transportation of goods by road will not attract GST.
- But if such goods are transported by a
- a goods transportation agency (or)
- a courier agency
GST will become applicable.
2. What is a Goods Transportation Agency?
- Any person who transports goods on behalf of any person and issues a consignment note is called a Goods Transport Agency.
- Note: There must be an agency relationship between the two parties.
3. What is a consignment note?
- A consignment note is a document provided by a goods transport agency for the transport of goods by road which indicates that the goods have been transferred to the transporter.
- It includes the name of the consigner and consignee, details of goods, place, weight of the goods etc.
4. What are the goods that will not be subject to levy of GST even if transported by a GTA?
- The following goods, even if transported by a GTA (Goods transport agency) will not attract GST
- relief materials meant for victims of natural or man-made disasters or accidents
- defence or military equipments
- newspaper or magazines registered with the Registrar of Newspapers
- Agricultural produce
- Milk, salt and food grains including flour, pulses and rice
- Organic manure
5. Transportation of goods by rail or vessel:
- No GST will be levied if the following goods are transported by rail or vessel from one place in India to another
- Relief materials meant for victims of natural or man-made disasters or accidents
- Defence or military equipments
- Newspaper or magazines registered with the Registrar of Newspapers
- Agricultural produce
- Milk, salt and food grains including flour, pulses and rice
- Organic manure
- Railway Equipments
6. Who is liable to pay GST on GTA services?
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FAQ’s on Reverse Charge Mechanism
7. Circumstances where no GST will be levied if goods are transported by a GTA?
- Apart from the transportation of specific goods covered in FAQ No 4, GST shall not be levied in the following cases too,
- If the consideration for transporting goods on a consignment in a single carriage is less than Rs. 1500.
- If the consideration charged for transportation for single consignee does not exceed Rs. 750.
8. I am transporting goods in my own vehicle to my customer. Should I collect GST in the invoice issued to my customer?
No, a supplier transporting his goods from one place to another using his own car or truck will not be required to pay any GST as mere transportation of goods by road will not attract any GST provided the supplier is not registered as a GTA or a courier agency.
9. If goods are transported by river or lakes will it attract GST?
No, transportation of goods by inland waterways such as canals, rivers or lakes are exempted from the levy of GST.
10. Transportation of goods by aircraft:
Services by way of transportation of goods by an aircraft from a place outside India upto the customs station of clearance in India are exempt.