Transport is a critical component of the economy. Transport issues can disrupt the economy. This is why petrol prices have an overall negative effect on business. We will be discussing GTA (goods transportation agencies) and the GST and goods transport requirements that they have.
Transportation of goods in India
India’s various traditional means of transporting goods is by road. According to the National Highways Authority of India (NHAI), approximately 66% of goods and 75% of commuter traffic move on streets. Courier agencies are usually responsible for goods transportation via route. We will now discuss GTA and which services are exempt from GST.
Meaning of GTA
A notification dated 28 June 2017 states that any person offering services to transport goods by road and issuing a consignment notice must pay GST. This announcement maintains that while others package hires vehicles to transport goods, only those who publish consignment notes are considered a GTA. Consignment notes are essential and should be viewed as a GTA.
Consignment note
A vital document essential for the transport providers consignment note is also known as the consignment letter. It’s issued for the unloading and carriage of goods in transport by road. This is the case transporting goods by truck transporter is responsible for ensuring safety. A consignment note includes –
Consignor’s name
Goods carriage registration number
Goods detail
Place of Delivery
Destination
The person responsible for paying GST
Transportation services are exempted from GST.
Only GTA goods and courier agents are subject to GST. All other commodities are exempted from this tax. Some transportation agencies that have to pay GST to include:
A truck transport agency
Courier Company
Via Inland Waterways
The result is that the truck transportation GST system continues to exempt goods transported by road.
Services offered by a GTA?
The service contains not only the truck transportation of goods but also other transitional services are given like-
- Loading of the goods
- Unloading of the goods
- Packing and unpacking of the goods
- Trans-shipment
- Offering to the warehouse for the goods for short intervals
RATE OF GST
If GTA offers this service, the GST rateGoods transport includes household goods and personal use, at 5%. It also provides for SGST 2.5% & CGST 2.5%.
Few exemptions are offered for specified goods.
Follow the goods that a goods agent transported via road in a mode other than transport, the truck GST exempted.
(a) Products produced by way of forming
(b) These goods, wherever charges for the goods transported in a single carrier is not more than 1,500
(c) Articles of kitchen appliances like rice, pulses, flour, milk products, food grains, and salt
(d) organic compost that is arranged for farming
(f) Magazines and newspapers that 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 manufactured adversities, accidents, misfortunes, or mishap
(h) When the country’s defence system has to be strengthened, the defence or military gears or other related equipment are transferred to different destinations.
