Transport Charges by road GST rate 5% or 18% which is better

[MUTHUKUMARAN K]

I am a transporter we arrange the transport for service receiver (Importer) and raise a transport invoice with 5% GST collect and paid till now. Now New GST update many of the transporter advised to bill the GST is 18%. But our Importer is uppose why you increse the GST on transport charges?. which percentage of GST is better than Transporter and Importer.

please advise.

 

AI Summary

Road transport GST rate choice affects input tax credit eligibility and compliance, influencing whether transporters claim or waive credits.
Choice of GST rate for road transportation determines input tax treatment and compliance exposure: the concessional road transport rate disallows input tax credit for the transporter on overheads and capital purchases, while charging the standard rate allows claiming input tax credit but may change recipient relations; options include continuing on the concessional rate, adopting the standard rate to utilize credits, or arranging reverse charge accounting by the recipient and reconsidering registration.