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FAQs on Transport and Logistics

We know it is quite difficult to know everything about TRANSPORT and LOGISTICS. So keeping this in mind, we have gathered some of the most important FAQs on TRANSPORT and LOGISTICS under GST for your reference.

Q1: I am a truck operator and I mostly take move consignments between States, conveying the goods reserved for my truck by an agent; total estimation of service which I rendered surpassed twenty lakh rupees during a year ago. Am I expected to take registration?

Ans: As per Notification number 12/2017-Central Tax (Rate), dated 28th June 2017, you need not obtain GST registration, as services rendered by the way of transportation of goods by road are excluded.

Q2: I own a single truck and I lease it to a significant player, who gives GTA services; would it be a good idea for me to take registration? Does my monthly lease income attract GST?

Ans: As per the tax vide entry no. 22 of Notification number 12/2017-Central Tax (Rate) dated 28th June 2017, you need not obtain GST registration as services by the method of giving on hire are exempt.

Q3: In my truck, I just convey fruits and vegetables, comparable to whose transportation services GST is exempt; would it be a good idea for me to take registration?

Ans: As per the entry no. 18 of notification No. 12/2017-Central Tax (Rate) dated the 28th June 2017, you need not obtain GST registration, as services rendered by the way of transportation of goods by road are excluded.

Q4: I am a truck provider/agent. My main responsibility is to get orders for truck proprietors. I quote the rate for transportation to GTA in the interest of truck proprietors and I get a small amount as commission out of the truck hire fixed with the GTA. As the services gave by rendered by the way of transportation of goods by road are excluded from tax, am I obligated registration?

Ans: Yes, you need to obtain GST registration, in case if the total value of your commission exceeds 40 lakhs INR (20 lakhs INR in the Special Category States with the exception of Jammu and Kashmir).

Q5: As a transporter, am I required to keep up any records of my services of transportation?

Ans: Yes, as per section 35(2) of the CGST Act, 2017 you are required to keep up records of the consigner, representative, and other important details of the goods. In addition to this, as per rule 56 of the CGST Rules, 2017 you are required to keep up records of goods transported, conveyed, and goods put away in travel by you alongside the GSTIN of the registered consigner and consignee.

Q6: According to Notification number 05/2017-Central Tax dated 19th June 2017, the people who are just occupied with making supplies of taxable goods or services or both, the tax on which is subject to be paid on reverse charge basis by the recipient of such goods or services or both U/S 9(3) of the CGST Act, 2017 are exempt from getting registration under the said Act. If you don’t mind explain whether GTA offering services according to the transportation of goods by road under reverse charge mechanism (RCM) can avail the benefit of this exemption?

Ans: Yes, a GTA offering service for the transportation of goods by road under the Reverse Charge Mechanism can avail the benefit of this exemption.

Q7: Can a GTA get registration for one vertical (Rail, Cargo, Renting, Warehousing, and so on.) for which tax should be paid while not acquiring registration for another vertical (GTA under RCM) on which there is no tax obligation.

Ans: No, the GTA needs to obtain GST registration for all the verticals as they are not exclusively engaged in transporting the goods or services that attract the reverse charge mechanism.

Q8: Please explain whether ITC is accessible to the recipient of services when the GST paid by him is at a concessional rate of 5% under the Reverse Charge Mechanism.

Ans: Yes, the input tax credit is accessible in such cases to the recipient of services, when the GST paid by him is at a concessional rate of 5% under Reverse Charge Mechanism.

Q9: When a GTA recruits a truck (with driver) from another GST registered person to provide transport services to a registered dealer, regardless of whether the tax credit is available to the GTA on the GST paid by him to the truck owner?

Ans: As per Notification number 12/2017-Central Tax (Rate) dated 28th June 2017, services rendered by a method of giving on hire to a GTA for transporting the goods are exempt from GST. So in such a case, GTA cannot claim ITC as he is not liable to pay tax.