GST Rates on Transportation of Goods by Road, Rail & Air

 When travelling for work, you can use the GST paid on your airline tickets as an input tax credit (ITC) for your company. In the event of passengers travelling in economy class, airlines may also claim ITC on input services. Airlines ITC can be claimed for meal products, spare parts, and other inputs other than fuel in the case of business class.

GST Transport of Passengers by Rail

*The preceding list is illustrative and is periodically subject to change.

GST on Transport of Passengers by Road

*The preceding list is illustrative and is periodically subject to change.

GST on Transportation of Goods

On transporting goods whether by air, train, or road will incur applicable tax where the rate at which tax is levied begins from 0%. However, there are certain conditions which on meeting will allow you to be exempted from paying the tax. The exemptions are given below:

1. Relief supplies intended for those harmed by accidents, disasters, or other man-made or natural calamities.
2. Produce/products from agriculture and organic manure.

1. Rice, flour, beans, lentils, milk, salt, and other grains of food.
2. publications and newspapers that are listed with the Registry of Newspapers.
3. Transporting military and defence gear.
4. If the total cost of the products transportation is less than Rs.1,500.

You will also be exempted from paying tax on transportation of goods under the following conditions:

1. Transporting household items or goods for personal use.
2. Transportation of Unregistered Persons' Goods.

However, applicable tax rates can be applied on transportation of goods for the following category

1. If ITC (input tax credit) is not used, there is a 5% GST on transit.
2. If ITC is used, 12% GST is applicable.

GST on transporting of goods will also be levied under the following cases given below:

What is GTA?

According to the GST Act, any person or organisation that issues a ‘consignment note’ or other similar document and offers services like the transportation of goods by road is referred to as a GTA, or goods transportation agency.

A GTA may not always be related to an individual or an organisation who leases out cars for the movement of goods. As a result, only individuals or companies who issue ‘consignment notes’ qualify as GTA. In addition to transportation from the consignor to the consignee, a GTA also offers the following crucial services:

1. Packaging and unpacking products
2. Loading and unloading cargo

1. Ad hoc warehousing
2. Trans-shipping i.e., shipment between intermediaries rather than end-to-end conveyance

e-Way Bill and Consignment Note

1. During the transportation of goods, there are a couple of documents you will have to produce – Consignment Note and the e-Way Bill. The consignment note is issued by the GTA in place of a goods receipt when delivering goods via vehicle.
   1. The responsibility for the items remains with the transporter until the consignment is delivered to the consignee. The creation of a consignment note which is done by the transporter is free of charge. The document will, however, include the following information given below:
2. The consignor's name

1. The consignee's name
2. Registration number of the vehicle used to convey the goods
3. Information about the item
4. Origin and destination locations.
5. Consignor, consignee, or GTA are the parties responsible for paying GST.

Similarly, an e-Way Bill is generated before the good is transported. You can generate this bill by visiting the official e-Way Bill portal. You must note that this is a mandatory document which must be generated in order to successfully transport goods and is to be showed by all GST-registered people and entities engaged in the road transportation of goods between locations.

The identity of the consignee and consignor, the GST paid on the items being transported, as well as information about the vehicle being used to deliver the products are all included in the e-Way Bill.