Gst on transportation of goods by road

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2017 Dear Sir,

We are service provider (transportation of goods by road) as GST is consumption/destination base tax.

What will be tax structure

1) If we provide above service from maharashtra to maharashtra (within the state) then we have to charge CGST and SGST

2) If we provide above services from maharashtra to other states(inter state) then we have to charge only IGST.

Please clarify with tax rates

Thanks & Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 May 2017 In case of within the state 2.5% CGST and 2.5% SGST applicable. In case of inter state 5% IGST applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2017 Thanks for reply sir, in continuation to my query we are located in Maharashtra if we provide services i.e. goods lifted from UP and delivered at UP is it called intra state transcation and inter-state transcation ? and my customer is located in other states

Thanks & Regards

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 June 2017 It will be called inter state transaction.

Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2017 Thanks for the prompt reply sir, as we transporter won't get any input tax credit, is it necessary to take GST details of our supplier for filing GST returns or it will automatically reflect in GST site.

Thanks & regards

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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27 July 2024 ### GST on Transportation of Goods by Road

The GST implications for transportation of goods by road are indeed based on the place of supply, which determines whether the supply is intra-state or inter-state. Let’s address your queries in detail:

#### **1. Tax Structure for Transportation of Goods by Road:**

- **Intra-State Supply (Within the Same State):**
- **CGST and SGST:** If you are providing transportation services from one location to another within Maharashtra, you will charge **CGST** (Central Goods and Services Tax) and **SGST** (State Goods and Services Tax) on the transportation charges.
- **Rate:** The GST rate for transportation of goods by road is generally **5%**. This is applicable whether you are classified as a Goods Transport Agency (GTA) or a regular transporter. The specific provisions can be found in **Notification No. 11/2017-Central Tax (Rate)**.

- **Inter-State Supply (From Maharashtra to Other States):**
- **IGST:** If you provide transportation services from Maharashtra to another state, you will charge **IGST** (Integrated Goods and Services Tax) on the transportation charges.
- **Rate:** The rate is typically **5%** for transportation of goods by road. Refer to the same notification for the rate applicable.

#### **2. Transaction Type:**

- **Goods Lifted from UP and Delivered at UP:**
- This is an **intra-state** transaction if both pickup and delivery occur within the same state (UP in this case). Therefore, CGST and SGST should be charged.
- **Customer’s Location:** The location of the customer does not affect the intra-state or inter-state classification; what matters is the place of supply of the goods.

- **Goods Lifted from UP and Delivered in Maharashtra:**
- This is an **inter-state** transaction. Since the place of supply is different from the place of origin, IGST should be charged.

#### **3. Input Tax Credit (ITC):**

- **For Transporters:**
- **GTA Services:** When dealing with transportation services from a GTA, you will generally not get ITC if the GST is at 5% under GTA rules.
- **Regular Transporters:** For other transporters charging 18%, ITC can be claimed on the GST paid.

- **Supplier’s GST Details:**
- **Filing GST Returns:** Even if you do not get ITC, it is necessary to obtain and verify the GST details of your suppliers for accurate GST returns. This ensures that the GST collected and paid is correctly accounted for in the GST returns and that there are no discrepancies.
- **Automatic Reflection:** Supplier details will be automatically reflected in your GST portal if they are registered and correctly upload their invoices. However, manual verification ensures correctness.

#### **Summary:**

1. **Intra-State Supply:** Charge **CGST** and **SGST** at **5%**.
2. **Inter-State Supply:** Charge **IGST** at **5%**.
3. **Transaction Type:** Based on place of supply. If both pickup and delivery are in the same state, it is intra-state. If they are in different states, it is inter-state.
4. **ITC:** Necessary to verify supplier GST details for accurate returns; ITC may be available depending on the rate and classification.

### **References:**

- **Notification No. 11/2017-Central Tax (Rate):** For GST rates applicable to transport services.
- **GST Act & Rules:** For detailed provisions on place of supply and GST compliance.

Consulting with a GST professional or tax advisor is recommended for precise guidance tailored to your specific transactions and business operations.