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Input Tax credit on transportation of goods under GST
input credit on transportation of goods

Input Tax credit on transportation of goods under GST

Input Tax credit on transportation of goods under GST

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:- By Air By Water By Road Rail GTA Other modes

Goods are transported by using three means of transportation:-

  • By Road
  • By Water
  • By Air

By Road

Particular Whether taxable or not

Under GST regime

Tax rate
By rail other than container Taxable 5% with ITC On input tax credit
By rail in container Yes 12% with ITC on input  service
By goods transport agency Yes 5% with no ITC
Service of goods by courier agency Yes 18% with no ITC
Other than rail .GTA or courier service Exempt Service Exempt service

 

By Air

Particular Whether taxable or not

Under GST regime

Tax rate
Within India Yes 18%
From outside India Yes 18%
From outside India to India Exempt service Exempt service

By water 

Within India (inland waterways).

Particular Whether taxable or not

Under GST regime

Tax rate
Within India (inland waterways).

 

Exempt service Exempt service
From India to outside India. Yes 18%
From outside India to India Exempt service Exempt service

 

Goods Transport Agency under GST
Transportation is a huge part of the economy. Any problems in transportation disrupts the entire business channel. This is why any petrol price change has a far-reaching effect in disruption of business.

The most popular form of goods transport in India is via road. As per the National Highways Authority of India, about 65% of freight and 80% passenger traffic is carried by the roads.

Transportation of goods by road are done by transporter or courier agency. This article will discuss the transporter,i.e., the GTA or goods transport agencies and the provisions of GST applicable on them.

 

Goods Transport Agency under GST
GST will not apply on transport of following goods by a goods transport agency-

  1. agricultural produce
  2. milk, salt and food grain including flour, pulses and rice
  3. organic manure
  4. newspaper or magazines registered with the Registrar of Newspapers
  5. relief materials meant for victims of natural or man-made disasters
  6. defence or military equipment
  7. goods, where consideration charged for the transportation of goods on a consignment transported in a single
  8. Carriage is less than Rs. 1,500
  9. goods, where consideration charged for transportation of all such goods for a single consignee does not exceed Rs. 750.

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