GST on Transport
How GST applies to goods transport by road, including the GTA rate options and reverse charge.
Road transport of goods is taxed through the Goods Transport Agency mechanism. A GTA broadly has two rate options: a lower rate without input tax credit, or a higher rate with credit available. Which is better depends entirely on how much creditable input the fleet actually incurs — a fleet with heavy workshop, tyre and toll spend may be better off paying the higher rate and taking credit.
Reverse charge is the other structural feature. For specified categories of recipient, the liability to pay GST on the freight sits with the recipient rather than the transporter. That changes who remits the tax, not whether it is due, and it is why many transport invoices to corporate customers carry no GST at all.
Certain movements are exempt outright, including transport of specified agricultural produce and consignments below prescribed value limits. The exemptions are narrow and specific, so they should be applied from the notification rather than from custom.
This entry describes statutory requirements, which change by notification and can differ between states. Treat it as orientation, not legal advice, and confirm the current position for your own operation before relying on it.
Tax & compliance
GST, e-Way Bill and e-invoicing as they actually apply to transport.
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