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

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....ransport Charges by road GST rate 5% or 18% which is better <br> Query (Issue) Started By: - MUTHUKUMARAN K Dated:- 24-9-2025 Goods and Services Tax - GST <br> Got 5 Replies <br> GST<br> <br> 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 ....

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....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. &nbsp; --Reply By: Sadanand Bulbule The Reply: As per GST law (Notification 11/2017-Central Tax), transportation of goods by road is taxed at 5% GST. The 18% rate applies only to other services where Input Tax Credit is available. ....

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....Hence, 5% GST is better, if you convince the importer to avoid disputes. --- Sub-Reply By: MUTHUKUMARAN K The Sub-Reply: Dear Sir, thanks your reply. one more doubt 5% GST we billed and collect and paid. If our company (Transporter) Pay Rent, Telephone Bill, Stationary Purchase Bill and Computer Purchase Bill GST input is NIL correct sir. --Reply By: KASTURI SETHI The Reply: 5% rate of tax i....

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....s far better than 18% (with ITC).&nbsp; It is the safest from all angles i.e. Audit purpose, major hurdle of Section 17 (5) of CGST etc. Interest and penalty is also saved. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; --- Sub-Reply By: MUTHUKUMARAN K The Sub-Reply: Dear Sir, thanks your reply. one more doubt 5% GST we billed and collect and paid. If our co....

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....mpany (Transporter) Pay Rent, Telephone Bill, Stationary Purchase Bill and Computer Purchase Bill GST input is NIL correct sir. --Reply By: Shilpi Jain The Reply: Yes you are correct. If you collect 5% GST then you as a transporter will not get any input tax credit. If you have a higher ITC available which you wish to use, you can convert to 18%. If not huge ITC then you can continue with 5% GS....

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....T or get the importer itself to pay under RCM and cancel your registration if feasible <br>***<br> Discussion Forum - Knowledge Sharing....