GST Exemption for Goods Transport Services Provided to Government Entities for Tax Deduction Under Section 51

Services provided by a goods transport agency for transporting goods in a goods carriage are exempt from GST if the service is provided to a Department or Establishment of the Central or State Government, a Union territory, a local authority, or governmental agencies. These entities must be registered under the Central Goods and Services Tax Act, 2017, solely for tax deduction purposes under Section 51, not for making taxable supplies. The terms "goods carriage" and "goods transport agency" are defined as per the Motor Vehicles Act, 1988, and the GST framework, respectively. This exemption was introduced by Notification No. 29/2018, effective from January 1, 2019.