HOW AND WHEN TO PAY TAX FOR TRANSPORTATION OF GOODS UNDER GST REGIME

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• BY CS DIVYANSHU SAHN                                            
• Divyanshu Sahni & Associates    
• Company Secretaries
• JanakPuri, New Delhi
• IMAIL ID: INFO@finlegalforte.com

In India, Goods are transported by using three means of transportation: –

1. By Air
2. By Water
3. By Road

• Rail
• GTA
• Other modes

 

CASE 1. Transport of goods by Air (How Much tax rate)

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

 

 

 

CASE 2. Transport of goods by Road(HOW MUCH TAX RATE)

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.

 

CASE 3: 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. anybody 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.

 

CASE 4. Exceptions: – WHEN NO TAX IS APPLICABLE UNDER GST

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.

 

CASE 5. IN CASE OF TRANSPORT BY GTA when no tax is applicable

Services provided by a goods transport agency, by way of transport in a goods carriage of,-

• agricultural produce;

 

WHEN

 

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

• 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;