GST-Rate-for-Goods-Transport-Services

GST Rate for Goods Transport Services

GST Rate for Goods Transport Services

To classify the services, the GST Council linked all the GST rates to Service Accounting Code (SAC Code). The Service Tax Department shall use the SAC Codes to levy the tax for the categories of services used. The GST Council introduced the GST rate on Goods Transport Services linking to the SAC Codes under 5%, 12%, 18% GST rate.

GST Registration for Transporters

GST registration has been made mandatory in India for all taxable persons involved in the business of good transport irrespective of the annual sales turnover. Further, persons or businesses involved in providing goods transport services must be familiar with GST E-Way Bill rules and regulations.

Know more about GST registration requirement for Transporters, Warehouses and Godowns.

Land Transport Services of Goods

In SAC code, under the group goods transport services, there is a separate heading for land transport services of goods. The following services are classified under this group with the respective SAC codes.

SAC Code 996511 – Road transport services of Goods including letters, parcels, live animals, household and office furniture, containers and others by refrigerator vehicles, trucks, trailers, man or animal-drawn vehicles or any other vehicles.

SAC Code 996512 – Railway transport services of Goods including letters, parcels, live animals, household & office furniture, intermodal containers, bulk cargo, etc.

SAC Code 996513 – Transport services of petroleum & natural gas, water, sewerage and other goods via pipeline.

SAC Code 996519 – Other land transport services for goods.

Water Transport Services of Goods

In SAC code, under the group goods transport services, there is a separate heading for water transport services of goods. The following services are classified under this group with the respective SAC codes.

SAC Code 996521 – Coastal and transoceanic (overseas) water transport services of goods by refrigerator vessels, tankers, bulk cargo vessels, container ships, etc.

SAC Code 996522 – Inland water transport services of goods by refrigerator vessels, tankers and other vessels.

Air Transport Services of Goods

In SAC code, under the group goods transport services, there is a separate heading for air transport services of goods. The following services are classified under this group with the respective SAC codes.

SAC Code 996531 – Air transport services of letters & parcels and other goods.

SAC Code 996532 – Space transport services of freight.

GST Rate for Goods Transport Services

Transport of goods by rail attracts 5% GST with input tax credit allowed on input services.

Services of goods transport agency (GTA) related to the transportation of goods and shipping of used household goods for personal use attract 5% GST with no input tax credit allowed.

Transport of goods in a vessel including services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India is taxable at 5% GST with input tax credit of input services. This would be applicable for services relating to the import of goods into India.

Transport of goods in containers by rail by any person other than Indian Railways attracts 12% GST rate with a full input tax credit.

In case the GST rate for the services has not been specifically mentioned above, then 18% GST rate would be applicable with a full input tax credit.

Visit the IndiaFilings GST Portal for more information about GST rates, GST registration and GST filing in India.

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