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GST Applicability on Goods Transportation

18 April 2020

Hello Experts, My Client have a Goods Transportation (Transporter Business). is it mandatory to take GST registration for him, as his Annual Receipt from Transportation is Rs45 Lakh approx. please advice.

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7 Replies

sujith kumar dasa (banglore) (1496 Points)
Replied 18 April 2020

Yes, he has register if turnover is more than 20 lakhs

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NITIN SABOO (344 Points)
Replied 18 April 2020

Sir, they are not issuing Consignment Note and less than 10 trucks, please advice

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 18 April 2020

@ Mr Nitin Saboo.,

Can You give some more details about the transportation business...?!
I mean Your client's activities in the business...!

If the he is doing transportation business as "Transportation of goods by road" then it's exempted supply under GST.
As per above Registeration not required.

NITIN SABOO (344 Points)
Replied 18 April 2020

Dear Raja P M Sir, Good evening, Yes Sir, my client is doing business of Transportation of Goods by Road, and he have less than 10 trucks in his name. under which section it is exempt. please advice.

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 18 April 2020

1).

What service of transportation of goods is exempt under GST?

Services by way of transportation of goods are exempted:

(a) by road except the services of:

(i) a goods transportation agency;

(ii) a courier agency

(b) by inland waterways.

Therefore, the service of transportation of goods by road continue to be exempt even under the GST regime. GST is applicable only on goods transport agency, GTA.

2)
Services by way of transportation of goods- (a) by road except the services ofÑ (i) a goods transportation agency; (ii) a courier agency; (b) by inland waterways. Explanation.- Ògoods transport agencyÓ means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.

SAC Code 9965

Rate(%) : Nil

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Shivam RC (Student) (23683 Points)
Replied 18 April 2020

@ Nitin Saboo Sir,

As per the Provision of Section 11 of the CGST Act 2017 read with Notification No. 12/2017 - Central Tax ( Rate ), dated 28.06.2017 :

"SERVICES BY WAY OF TRANSPORTATION OF GOODS BY ROAD WILL BE EXEMPTED FROM GST".

Moreover, As per the Provision of Section 23 clause (a) of the CGST Act 2017 : "Any Person engaged EXCLUSIVELY in the business of supplying goods or services or both that are not liable to tax or wholly EXEMPT from tax, shall not be liable for Registration under GST."

Hence, Registration under GST is not required.

Regards,
Shivam RC.

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