GST on Transport

GST on rail tickets (passenger transport) is applicable at the following rates*:

*The above list is not exhaustive and subject to periodic change.

Passenger road transport services feature various GST rates depending upon the mode of transportation chosen. The following are the key GST rates that are applicable to GST on transport of passengers by road*:

*The above list is not exhaustive and subject to periodic change.

The transportation of goods carried out by air, rail, road and inland waterways incurs GST on transport at an applicable rate starting from nil GST. The following are some of the key goods that are exempt from GST on transport*:

Exemption or Nil GST on transport is also applicable in the following cases:

Apart from the above cases, GST on transport of goods by a GTA (goods transport agency) features the following taxation rates:

Alternately, the following GST rate may also be applicable:

*The above lists and rates are indicative and subject to periodic change. You can use Paisabazaar’s handy GST Rates HSN tool to get the latest GST on transportation rates.

As per the GST Act, a GTA or goods transportation agency refers to any person/entity that issues a “consignment note” or similar document and provides services such as transport of goods by road. As per the definition, a GTA might not always refer to an individual/business that is hiring out vehicles for transportation of goods. Thus it is individuals/businesses that issue a “consignment note” that qualify as GTA. Apart from transportation from consignor to consignee, other key services provided by a GTA include:

Consignment note and eWay bill are two key documents involved in the transportation of goods. The consignment note is a document issued by a GTA (goods transportation agency) in lieu of a receipt of goods for transporting goods by road. Once a consignment note is issued, the lien of goods is transferred to the transporter i.e. the responsibility of goods remains with the transporter till the consignment is delivered to the consignee. No extra charges need to be paid for generating a consignment note which is generated by the transporter. However, the document will contain details of who is paying the GST on transportation and goods included in the consignment.

An eWay Bill is to be generated before goods are transported. This document has to be generated on the official eWay Bill Portal and is a key document for ensuring compliance with GST rules. The e-Way bill is a mandatory requirement for all GST registered individuals and businesses involved in the transport of goods by road from one location to another (whether within transportation occurs within the same state or interstate). Details included in the eway bill include GST paid on goods being transported, name of consignee and consignor as well as details of vehicle being used to transport the goods. Know more about generating and utility of e-Way Bill