Transportation of Goods Under GST .

Transportation however has a  very important role in the civilization of human beings and also for the development of a country. Transportation of goods also  has a vital part in the development of a business. Availability of the  raw material, the packing material and also plant and machinery from the  different part of the world and also  making the finished goods available to the customer in the different part of the world thus  depends upon the transportation system. Goods also become cheaper and expensive totally  depending on the transportation cost. In order To keep this in mind, government has thus given separate rates of the transportation of goods and also some of the transportation of goods are however exempted from GST.

 

The purpose of this article is to make the reader aware of the Transportation of Goods Under GST .

 

Goods are however  transported by using these three means of transportation which are :-

 

  1. By Air
  2. By Water
  3. By Road

               Rail

               GTA

Other modes

 

Transport of goods by Air

  • Within india , the transport of goods by air is taxable under gst at the rate of 18%
  • From india to outside , the transport of goods is taxable under GST at the rate of 18%
  • But, in case of transport of goods outside india , this service is exempted under GST

 

For , transport of goods by water

  • In case of transport of goods within India by Inland Waterways , this service is exempted under GST.
  • In case from india to outside india , the transport of goods is taxable under GST at the rate of 18%
  • In case of transport of goods outside india , this service is exempted but with certain conditions which is that :  
  1. Service must be provided by a person who is  located in a  non taxable territory.
  2. Services is  provided to a person who is thus  located outside the taxable territory.
  3. The transportation of goods is however  done in a vessel.

 

For , transport of goods by road

  • In case of transport of goods by rail other than the container , GST is taxable at the rate of 5% with ITC on input service
  • In case of transport of goods by rail in container , GST is taxable at the rate of 12% with ITC on input service
  • In case of transport of goods goods transport agency  , GST is taxable at the rate of 5% with no ITC
  • In case of transport of goods by services of goods by a courier agency  , GST is taxable at the rate of 18% with ITC credit
  • But, in case of transport of goods other than the rail, GTA and courier agency  , this service is exempted under GST

 

However , there are certain exceptions which are as follows :-

On the Services by the way of transportation by either  rail or a vessel  from however  one  place  in India to the another of the following  goods -

  • relief materials which are meant for the  victims of both  natural or man-made disasters,
  • calamities,
  • accidents or either  mishap;
  • defence or the military  equipments;
  • newspaper or the magazines that are  registered with the Registrar of Newspapers;
  • railway equipments or the   materials;
  • The agricultural  produce;
  • milk, salt and the food grain including flours, pulses and rice;
  • and also organic manure.

 

On the Services which are provided by a goods transport agency either , by the  way of transport in a goods carriage of,-

 

  • The agricultural produce;
  • goods, where the  gross amount is however  charged for the transportation of the  goods on a consignment which is thus  transported in a single carriage does not however exceed one thousand five hundred rupees;
  • goods, where the  gross amount which is  charged for the  transportation of all such goods thus for a single consignee does not thus exceed rupees seven hundred fifty;
  • milk, salt and the  food grain including the  flour, pulses and  rice; organic manure; newspaper or the  magazines which are  registered with the Registrar of the Newspapers;
  • relief materials which are  meant for victims of both natural or man-made disasters, calamities, accidents or mishap; or the defence or the military equipment's.

 

Reverse Charge in case of GTA:

 

Normally a service provider is however  required in order  to pay taxes, but however  in case GTA provides the services to the following persons, the recipient of  the services is however required in order to pay GST under the  reverse charge:-

 

  • any factory which is thus  registered under or is however governed by the Factories Act,1948;
  • any society which is thus  registered under the Societies Registration Act, 1860 or under either  any other law for the time being which is  in force in any part of India;
  • any kind of co-operative society which is established by or also  under any law; any person who is thus  registered under CGST/SGST/UTGST Act;
  • any body which is however a  corporate established by or under any law;
  • or any kind of  partnership firm whether it is thus  registered or thus not under any law including the  association of persons; casual taxable person.

 

Thus , for further queries related to GST , one can contact LegalRaasta .

Legal Raasta , an online web portal which provides more than 100+  legal services has built however  an extremely easy-to-use and an intuitive software for GST . However , the founders of LegalRaasta a startup which provides legal services aims at easing the difficulties related to GST by providing many services . Choosing LegalRaasta is beneficial as:

  1. It has , 30+ offices in India
  2. It has 10+ years experience
  3. It helps to save your time
  4. There is a cash back guarantee

Some of the services which it provides are :

  1. Tax Filing/TDR - GST Registration , GST Return, ITR , TDS Return filing, Business income return , Bulk return filing , Revised return filing , Respond to tax notice
  2. Company Formation - Pvt. Ltd., Limited Liability Partnership (LLP) , OPC registration
  3. Registrations - DSC, Trademark, Patent , Copyright

It thus also provides many more services .