Goods Transport Agency under GST and the Rates Applicable

Transport of goods by road is the most commonly used mode of transportation for businesses which supply goods. This transportation by road is facilitated either by a Goods Transport Agency (GTA) or common carriers such as autorickshaw or courier agencies. In this blog, we will understand what is meant by a Goods Transport Agency (GTA) and the GST rates for transportation service provided by a Goods Transport Agency. This is the first blog in the series wherein, we will understand the various tax provisions with respect to services provided by Goods Transport Agencies and the tax impact on persons taking their services.

Who is a GTA?

A GTA is basically any person who provides services in relation to transport of goods by road and issues a consignment note, commonly called as Lorry Receipt (LR), using accounting software like Tally Prime. Hence, a person who provides the service of transportation of goods by road or any related service, such as loaGST on GTA servicesding, unloading, packing, unpacking, etc. can be considered as a GTA if the person issues a consignment note. Issuing of a consignment note or LR to the person taking the transportation service is integral for a person to be considered as a GTA. A copy of this consignment note will be sent to the consignee which gives the consignee the right to receive the goods from the GTA. The issue of a consignment note is what differentiates a GTA from a regular transporter. A regular transporter who can issue any document for the transportation service, except the consignment note.A consignment note issued by a GTA should contain the following details:

1. Should be serially numbered
2. Names of the consignor and consignee
3. Registration number of the carriage used for transport of goods
4. Details of the goods transported
5. Place of origin and destination
6. Person liable for paying tax

GST on GTA services

The GST rates for transportation services provided by a GTA are given below:Exempt

• Transport of agricultural produce

• Transport of milk, salt, food grains including rice, flour, pulses

• Transport of organic manure

• Transport of newspapers or magazines registered with the Registrar of Newspapers

• Transport of relief materials for victims of natural or man-made disasters, calamities, accidents or mishaps

• Transport of defence or military equipment

• Transport of any goods, where the gross amount charged for transportation for a consignment transported in a single carriage is less than Rs. 1,500

For example

Raj Logistics, a GTA, provides transportation services to Manish Apparels, a registered dealer^th

• Transport of any goods, where the gross amount charged for transportation of goods for a single consignee is less than Rs. 750

For example

Raj Logistics transports a batch of apparel on behalf of Manish Apparels to Rakesh Designs. It is transported in 2 different vehicles along with other goods. Raj Logistics charge Rs. 700 as freight for this.Here, the batch of apparel is transported in 2 different vehicles but to the same consignee, that is, Rakesh designs, and the value of transportation chargeshow to use TallyContact usTally Partner.