Clarification on transport charges

[THYAGARAJAN KALYANASUNDARAM]

Dear expert,

As per the notification no. 11/2017 central tax (rate) dated 28.06.2017 says that, heading 9965 goods transport services is liable @ 2.5/6/9 as the case may be.

Whereas under the notification no. 12/2017 central tax(rate) dated 28.06.2017 says that, heading 9965 services by way of transportation of goods is Nil.

(a) by road except the services of

(I) a goods transportation agency

(II) a courier agency

(b) by inland waterways.

Can anyone explain what is the difference between the two notification with regards to transportation charges.

Thanks in advance

[KASTURI SETHI]

There are following exemptions in 12/17 :-. 1. Details given in entry no. 21 of notification. 2. Transportation of goods by road I.e. Three Wheeler Auto, Tractor and other vehicles not covered under Motor Vehicles Act.

[Ganeshan Kalyani]

There are many queries on this subject. Thanks Sri Kasturi Sir for the clarification.

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

Thanks for your information.

[RAMESH PRAJAPATI]

I agree with Kasturi Sir's view.

Services (under heading 9965) by way of transportation of goods by road is nill - except by GTA & Courier Agency. It means if the service is not provided by GTA & Courier agency then it is exempted.

If service is transportation of goods by inland waterways, it is also exempted.

Transportation of goods by GTA and courier services attracts the rate mentioned by the querrist.

AI Summary

GST treatment of goods transport services: GTA and courier services taxable; other road and inland waterways transport exempt.
Transportation of goods by road is exempt when not supplied by a Goods Transportation Agency or a courier agency; transportation by inland waterways is also exempt. Services supplied by a GTA or courier agency remain taxable at the rates prescribed for goods transport services. Exemptions also encompass road vehicles not covered by the Motor Vehicles Act such as three wheelers and tractors.