GST on Goods Transport Service by Road

GST in Transport

Transportation is very significant for the economy and if any issues arise with transportation it will disturb the whole economy and the business vital part of the economy as any problem in transportation disrupts the entire business channel. It is one of the chief reasons why hike in petrol has an across-the-board effect in disturbance of business.  In this write-up, we will consider GTA (goods transport agencies) and the goods transportation and the requirements of GST relevant to them

Transportation of goods in India

Road transportation is the most well-known means of transporting goods in India. According to the National Highways Authority of India, approximately 66% of goods and 75% of commuter traffic moves on the roads. Goods transportation is done via road is normally done by courier agency. Now we will discuss GTA and what services are exempted from GST.

Meaning of GTA

According to a notification dated 28th June 2017, central tax, GTA or “goods transport agency” indicates any person who offers services in relation to the transportation of goods via road and gives a consignment note is bound to pay GST. It is an indication that whilst others may hire vehicles for the transportation of goods, only the ones who issue a consignment note are measured as a GTA. A consignment note is a vital condition to be thought of like a GTA.

Consignment note

An important document that is given by the transport providers is known as the consignment note. It is issued against the unloading of goods for transporting the goods via road in the transportation of goods by a carriage. In this case, transporting goods by truck safely is wholly the responsibility of the transporter.   A consignment note comprises of –

  • Consignor’s name

  • Goods carriage registration number

  • Goods detail

  • Place of Delivery

  • Destination

  • The person responsible for paying GST

Transportation services exempted from GST

Only the GTA goods and courier agencies are liable to pay GST and all the other All transportation commodities are exempted. Some of the transportation agencies that are forced to pay GST are-

  • A truck transport agency

  • Courier Company

  • Via Inland Waterways

 As a result, the truck transportation of goods via road continues to be exempted under the GST system. 

Services offered by a GTA?

The service comprises of not only the truck transportation of goods, but even other transitional services are given like-

  • Loading of the goods
  • Unloading of the goods
  • Packing and unpacking of the goods
  • Trans-shipment
  • Providing warehousing for the goods for short intervals


The rate of GST if the service is offered by GTA on the Goods transport that includes household goods or items of personal use is 5% that includes SGST 2.5% and CGST 2.5%. 

Few exemptions that are offered for specified goods

Following goods transported by a goods agency via road in a transport truck are exempted from GST-

(a) Products produced by way of forming

(b) Those goods, where charges for the goods transported in a single carrier is not more than 1,500

(c) Items of kitchen use like rice, pulses, flour, milk products, food grains, and salt

(d) organic manure that is used for farming

(f) Magazines and newspapers those are registered with the Newspapers Registrar

(g)When the country comes across a natural calamity the relief material provided for the  wounded or dead of natural or man-made adversities, accidents, calamities, or mishap

(h) When the defense system of the country has to be strengthened and the defense or military gears or other related equipment are transferred to different destinations.

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