{"id":9621,"date":"2020-05-28T17:36:58","date_gmt":"2020-05-28T12:06:58","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=9621"},"modified":"2024-12-17T18:54:51","modified_gmt":"2024-12-17T13:24:51","slug":"gst-on-transportation","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/gst-on-transportation\/","title":{"rendered":"GST on Transportation- Applicability &#038; Exemptions"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The\nGST on transportation is applicable on goods along with the passengers pursuing\ntheir journey through the <strong>roadway<\/strong>, <strong>railway<\/strong>, <strong>airway<\/strong>, or <strong>waterway<\/strong>.\nIt&#8217;s an undeniable fact that the transportation industry plays a massive part\nin the progress of any nation. Moreover, it&#8217;s not wrong to say that the growth\nof the transportation industry and the growth of a country walk hand in hand.<\/p>\n\n\n\n<p>Various GST rates ranging from nil to 18% are applicable in the transport industry. Goods and service tax on transportation services have considerably not affected the ticket prices of traveling by Air, Road, or Rail. In addition to this, if <a href=\"https:\/\/corpbiz.io\/gst-registration\" title=\"GST Registration\"><strong>goods and service tax<\/strong><\/a> on transport gets charged; Input Tax Credit is not applicable all the time. According to the report of the National Highways Authority of India, about <strong>65% of freight\/cargo<\/strong> along with <strong>80% passenger<\/strong> traffic gets carried by the roads.<\/p>\n\n\n\n<p>A few years back, the road transport industry has gained the spotlight with regard to the new GST, whose applicability is on freight charges including goods transport agencies, i.e., GTA. In this blog, we will spread rays of knowledge on the applicability of GST on the transportation of goods as well as passengers.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/gst-on-transportation\/#GST_On_Transportation_of_Goods\" >GST On Transportation of Goods<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/gst-on-transportation\/#Taxation_rates_for_GST_on_Transportation_of_Goods_by_a_Goods_Transport_Agency_GTA\" >Taxation rates for GST on Transportation of Goods by a Goods Transport\nAgency (GTA)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/gst-on-transportation\/#GST_on_Transportation_of_Passengers_by_Rail\" >GST on Transportation of Passengers by Rail<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/gst-on-transportation\/#GST_on_Transportation_of_Passengers_by_Air\" >GST on Transportation of Passengers by Air<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/gst-on-transportation\/#Rules_Concerning_ITC_Claiming\" >Rules Concerning ITC Claiming<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/gst-on-transportation\/#GST_on_Transportation_of_Passengers_by_Road\" >GST on Transportation of Passengers by Road<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/gst-on-transportation\/#Peek_at_the_Concept_of_GTA_Goods_Transportation_Agency\" >Peek at the Concept of GTA (Goods Transportation Agency)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/gst-on-transportation\/#Essential_Documents_involved_in_the_Transportation_of_Goods\" >Essential Documents involved in the Transportation of Goods<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/gst-on-transportation\/#Take_Away\" >Take Away<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_On_Transportation_of_Goods\"><\/span>GST On Transportation of Goods<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nGST on transportation of goods starts from nil at an applicable rate. Here, the\ngoods and service tax gets incurred by the transportation of goods moved out by\nrail, road, air as well as inland waterways. The list of goods that are exempt\nfrom goods and service tax on transport are-<\/p>\n\n\n\n<ul>\n<li><strong>Military or defense<\/strong>\nequipment that gets transported<\/li>\n\n\n\n<li>Milk,\npulses, flour, rice, salt and different <strong>food\ngrains<\/strong><\/li>\n\n\n\n<li><strong>Relief material<\/strong>\nallotted to the victims of natural or man-made calamities, accidents, and\nmishaps, etc<\/li>\n\n\n\n<li>Magazines\nand newspapers registered with the <strong>newspaper\nRegistrar<\/strong><\/li>\n\n\n\n<li><strong>Organic manure<\/strong> as\nwell as agricultural produce<\/li>\n\n\n\n<li>If the\ntotal amount charged for the transport of goods is <strong>below Rs 1500<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>Applicability of Exemption or Nil GST on Transport is in the cases given below-<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"598\" height=\"291\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-148.png\" alt=\"GST On Transportation of Goods\" class=\"wp-image-9622\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-148.png 598w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-148-300x146.png 300w\" sizes=\"(max-width: 598px) 100vw, 598px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Taxation_rates_for_GST_on_Transportation_of_Goods_by_a_Goods_Transport_Agency_GTA\"><\/span>Taxation rates for GST on Transportation of Goods by a Goods Transport\nAgency (GTA)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>If <strong>input tax credit<\/strong> not availed, <strong>5% GST<\/strong> will be applicable on <strong>transport.<\/strong><\/li>\n\n\n\n<li>If input tax credit gets availed, <strong>12% GST<\/strong> will be applicable.<\/li>\n\n\n\n<li>On <strong>rental services<\/strong> of freight <strong>aircraft<\/strong> either with or without an operator, the applicability of <strong>GST is 18%.<\/strong><\/li>\n\n\n\n<li>On rental services vehicles running on the <strong>road<\/strong> like trucks without or without an operator, applicability of <strong>GST rate<\/strong> <strong>is 18%.<\/strong><\/li>\n\n\n\n<li>On rental services of <strong>water vessels<\/strong> comprising freight vessels either with or without an operator, applicability of <strong>GST rate is 18%.<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>Note<\/strong>&#8211; These rates are not fixed, and they keep varying from time to time as per the GST amendments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_on_Transportation_of_Passengers_by_Rail\"><\/span>GST on Transportation of Passengers by Rail<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Applicability\nof GST on rail tickets for passengers is at the rates given below-<\/p>\n\n\n\n<ul>\n<li>Nil\ngoods and service tax is applicable on <strong>metro\ntokens\/tickets<\/strong>.<\/li>\n\n\n\n<li>Nil GST\nis applicable on <strong>sleeper tickets<\/strong> as\nwell as tickets for general class.<\/li>\n\n\n\n<li><strong>18% goods<\/strong> and service tax is\napplicable on AC and first-class tickets of train.<\/li>\n<\/ul>\n\n\n\n<p>*<em>The above list is open to periodic change.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_on_Transportation_of_Passengers_by_Air\"><\/span>GST on Transportation of Passengers by Air<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Applicability\nof GST on air tickets for passengers is at the rates given below-<\/p>\n\n\n\n<ul>\n<li><strong>5% goods<\/strong> and service tax is\napplicable on <strong>air tickets<\/strong> for\neconomy class<\/li>\n\n\n\n<li><strong>5% goods<\/strong> and service tax is\napplicable on tickets of <strong>chartered\nflights<\/strong> for the pilgrimage visiting purpose<\/li>\n\n\n\n<li><strong>12% GST<\/strong> is applicable on the\nair tickets of <strong>business class<\/strong><\/li>\n\n\n\n<li><strong>18% goods<\/strong> and service tax is\napplicable on rental services of aircraft either with or without an operator\nand is also applicable on rental services of chartered flights<\/li>\n<\/ul>\n\n\n\n<p><em>*This list is subject to changes by the governing authorities.<\/em><\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/job-work-under-gst\/\">\nA Complete Outlook on Job Work under GST Regime\n<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rules_Concerning_ITC_Claiming\"><\/span>Rules Concerning ITC Claiming<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>In the\ncase of business class, airlines can claim the input tax credit for spare\nparts, food items, along with different types of inputs except for fuel.<\/li>\n\n\n\n<li>In the\ncase of economy class passengers, airlines can make claims for the input tax\ncredit on input services.<\/li>\n\n\n\n<li>Most\nimportantly, you can also claim the goods and service tax on air tickets as ITC\nfor business purposes. The condition is that your purpose of traveling should\nbe related to business.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_on_Transportation_of_Passengers_by_Road\"><\/span>GST on Transportation of Passengers by Road<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>The main GST rates that are applicable to goods\nand service tax on road transport of passengers-<\/li>\n\n\n\n<li>Nil GST is applicable to passengers using public\ntransport to travel via road<\/li>\n\n\n\n<li>Applicability of Nil GST on road transport of\npassengers by different modes of public vehicles like auto rickshaw\/metered\ntaxi and e-rickshaw<\/li>\n\n\n\n<li>Nil GST is applicable on transport via non-A\/C\ncontract carriage or stagecoach<\/li>\n\n\n\n<li>5% goods and service tax is applicable to\ntransport by radio taxi and also on similar kind of services<\/li>\n\n\n\n<li>On transport by A\/C contract carriage or\nstagecoach, 5% GST will be applicable and no applicability of ITC<\/li>\n\n\n\n<li>Applicability of 18% goods and service tax on\nrental services offered by road vehicles like buses, cars, coaches either with\nor without operator<\/li>\n<\/ul>\n\n\n\n<p><em>*These key rates are subject to changes from time to time.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Peek_at_the_Concept_of_GTA_Goods_Transportation_Agency\"><\/span>Peek at the Concept of GTA (Goods Transportation Agency)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Goods Transportation Agency or GTA means any person or an entity that renders services such as transportation of goods via road and issues consignment note as well. Going through the <strong>GST Act<\/strong><sup><a href=\"https:\/\/cbic-gst.gov.in\/gst-acts.html\"><strong>[1]<\/strong><\/a><\/sup>, we learned that it&#8217;s not necessary that GTA always refers to an individual or business that is performing the task of hiring out vehicles for goods transportation. Therefore, it is businesses or individuals that are responsible for issuing consignment note and get qualified as Goods Transportation Agency.<\/p>\n\n\n\n<p><strong>Services Provided by a Goods\nTransportation Agency<\/strong><\/p>\n\n\n\n<p>The\nvarious services that GTA provides are-<\/p>\n\n\n\n<ul>\n<li>Actual transportation of goods<\/li>\n\n\n\n<li>Packing\/unpacking<\/li>\n\n\n\n<li>Trans-shipment<\/li>\n\n\n\n<li>Loading as well as unloading<\/li>\n\n\n\n<li>Temporary warehousing facility<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Essential_Documents_involved_in_the_Transportation_of_Goods\"><\/span>Essential Documents involved in the Transportation of Goods<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"500\" height=\"220\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-150-e1590668081403.png\" alt=\"Transportation of Goods Documents\" class=\"wp-image-9636\"\/><\/figure><\/div>\n\n\n<ul>\n<li><strong>Consignment\nNote<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Goods\ntransportation agency issues a document in place of a receipt of goods for the\npurpose of transporting the goods via roads into a carriage. This document is\nknown as a consignment note. After a consignment note gets issued, the\nresponsibility of goods lies in the hands of transporter till the time\nconsignment gets delivered to the consignee. There is no need to pay additional\ncharges for generating a consignment note which the transporter has created.<\/p>\n\n\n\n<ul>\n<li><strong>eWay\nBill<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Before\nthe transportation of goods, eWay bill gets generated. eWay bill is a mandatory\ndocument for all businesses and individuals registered under GST involved in\nthe transportation of goods from one site to another. <\/p>\n\n\n\n<p><strong>eWay bill includes-<\/strong><\/p>\n\n\n\n<ul>\n<li>Name of Consignee<\/li>\n\n\n\n<li>Name of Consignor<\/li>\n\n\n\n<li>Details about vehicles used in transporting the\ngoods<\/li>\n\n\n\n<li>GST paid on transported goods<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Take_Away\"><\/span><strong>Take Away<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The GST law is carrying forward the provisions that were a part of the previous tax regime. However, the new law came with something different and identifies that most of the time, people in the unorganized sector renders the services of transportation of goods. Goods and service tax is applicable to transportation services provided by a goods transportation agency. Furthermore, businesses or individuals must issue consignment note in order to get qualified as GTA.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/gst-on-food-services-and-food-items\/\">GST on Food Services and Food Items: All that you need to Know\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The GST on transportation is applicable on goods along with the passengers pursuing their journey through the roadway, railway, airway, or waterway. It&#8217;s an undeniable fact that the transportation industry plays a massive part in the progress of any nation. Moreover, it&#8217;s not wrong to say that the growth of the transportation industry and the [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":9629,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[606],"acf":{"service_id":"334"},"authorName":"Margesh Rai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2024\/03\/Margesh.png","authorDescription":"With 10+ years of creative writing experience and 500+ blogs and thought leadership articles to his credit, Margesh Rai has left a significant impact in the field of content marketing. A published author and poet, Margesh Rai has experience writing for 20+ segments, such as Legal, Fintech, SAAS, Dairy, Real Estate, Hospitality, Recruitment, Sustainability, etc.","postViews":11714,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/9621"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=9621"}],"version-history":[{"count":14,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/9621\/revisions"}],"predecessor-version":[{"id":67926,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/9621\/revisions\/67926"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/9629"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=9621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=9621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=9621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}