Transport of goods on road is taxable in gst ?

[PN ELAMPARRUTHY]

A registered person own vehicle used for his business purpose to trnasporting of goods, in free time he used same vehicle for transport of goods for other charing only transport cost 

[Ryan Vaz]

Applicable Law / Notifications

• Section 7, CGST Act, 2017 – Scope of supply

• Section 9, CGST Act, 2017 – Levy of GST

• Section 2(26), CGST Act, 2017 – Definition of Goods Transport Agency (GTA)

• Notification No. 12/2017–CT (Rate) dated 28-06-2017, Entry 18 – Exemption for transport of goods by road (other than GTA / courier)

• Section 17(2) & Rule 42, CGST Rules, 2017 – ITC reversal for exempt supplies

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Short Practical Answer

GST depends on whether you are acting as a Goods Transport Agency (GTA) or not.

• If you are NOT issuing a consignment note ?
  Transport of goods by road is exempt from GST, even if you charge transport cost.

• If you ARE issuing a consignment note ?
  You become a GTA, and GST will apply (5% or 12% depending on ITC option).

[Sadanand Bulbule]

"Consignment Note" is the statutory backbone to qualify as GTA & tax liability.Otherwise he remains as Goods Transport Operator[GTO] and enjoys GST exemption like any other lorry owner.

[Shilpi Jain]

If its transportation of goods and you are charging cost, and you are issuing consignment note or any document that has details similar to those contained in a consignment note then GST is liable.

If you have taken credit of GST paid on your vehicle (which was purchased within 5 years) you shoudl file a declaration  in notified annexure, that you will pay GST under FCM. If you require the recipient to pay GST then that is also an option. FCM has 2 rates possible 5% or 18%.

[Shilpi Jain]

Based on your and your customers requirement you can chose an option FCM/RCM and continue that for the FY

[KASTURI SETHI]

GTO is NOT GTA and vice versa.

[KASTURI SETHI]

In continuation to above, technically both are different concepts.

[PN ELAMPARRUTHY]

Notification No. 12/2017–CT (Rate) dated 28-06-2017, Entry 18 – Exemption for transport of goods by road (other than GTA / courier), this is will not to the transport operator ? . Just issuing transport charges alone, mostly they URP catergory.

[KASTURI SETHI]

              Your query stands already replied by Sh.Sadanand Bulbule, Sir.

AI Summary

Road transport of goods: GST applies if a consignment note is issued and GTA status is established; otherwise exempt. Transport of goods by road is exempt from GST where the operator does not issue a consignment note and therefore does not act as a Goods Transport Agency; issuance of a consignment note (or equivalent particulars) makes the activity taxable as a GTA, requiring GST at the applicable rate and associated input tax credit adjustments.