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Goods Transport Agency in GST

Goods Transport Agency (GTA) in GST:


  1. To be covered under GTA services a person needs to provide service in relation to goods transport by road AND issues consignment note (by what ever name called) by which lein on the goods transfered to the transporter and the transporter becomes responsible for the goods till its safe delivery to the consignee. Hence to be qualified as GTA the service provider should be necessarily issuing a consignment note.
  2. Individual truck/tempo operators who do not issue any consignment note are not covered within the meaning of the term GTA.
  3. GST is charged @ 5% when input was not availed by GTA and the service receiver is liable to pay tax. However the service receiver shall take input credit on GST paid. When the service is provided to un registered person, GTA is liable to pay tax not the service receiver. 
  4. GST is charged @12% when input was availed by GTA and the GTA itself is liable to pay tax not the service receiver.
  5. No GST charged by GTA for transportation of specified goods like agriculture produce, milk, salt, and food grains including flour, pulses and rice; organic manure; newspaper or magazines registered with registrar of newspapers; relief material meant for victims of natural or man made disasters, calamities, accidents, or mishap; or defence or military equipments.
  6. No GST charged by GTA where consideration charged for the transportation of goods in a single carraige does not exceed Rs.1500/- and transportation of all goods for a single consignee does not exceed Rs.750/-.
  7. No GST payable by GTA on hiring a means of transportation of goods to provide his output services.
  8. The pure transportation of goods services are mostly provided by persons in the unorganized sector and hence has specifically excluded such operators from the tax net. In respect of those who provide agency services in transport, the liability is cast on the recipients in most of the  cases or unless option to pay under forward charge has been exercised by the GTA.

Compiled By
CA.R.Jeyarajan FCA.,
Mobile: 9943362200
Mail-id : ca.rjr@hotmail.com

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Location: Thoothukudi, Tamil Nadu, India

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