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GST Taxation Rule on Goods Transport Agency

Online Legal India LogoBy Ankar Kapuria Published On 18 Jan 2021 Updated On 22 Jan 2022 Category GST Registration

Transportation is a very crucial part of the business world and the trade market. With the disruption in the transport system, the market might get imbalanced and the economy gets a hard blow!

The Goods Transport Agencies (GTA) fall under the regime of the Goods and Services Tax Act (2017) and there are separate provisions for these agencies. Before starting a transportation unit, one should understand the GST policy properly to avoid penalties and fines.

GST regulations for GTA

Goods are mostly transported in India via roadways. As per the National Highways Authority of India, an average of 70% of goods and passengers are transported by the roads. 

Transport Services which are liable to pay the GST are:

 (i) A goods transportation agency;

(ii) A courier agency;

Therefore, GST applies only to goods transport agency, GTA.

Another point has to be noted here, a GTA does not have to register under GST if the agency exclusively transports goods where the entire tax is required to be paid by the recipient under reverse charge scheme even if the annual turnover exceeds 20 lakh.

 

How can we help you?

 

After understanding the GST norms, the GTA should complete the GST registration process according to their need. The steps are simple and can be executed online on any GST portal.

Among the portals, Online Legal India™ is trusted by lots of clients in India and this platform has a team of skilled GST experts who provides you professional guidance throughout the process at minimal charges. 

Not only that, we care for your legal needs and manage everything related to GST registration, Company Registration, and many other added services.


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