In India, the most popular form of transport is via road as per the national highways authority of India, about 65% of freight and 80% passenger traffic is carried by the roads. Transportation of goods by road is done by transporter or courier agencies.
Let’s understand the Taxability of Transport of Road under GST
As per the Notification no.12/2017 CENTRAL TAX (RATE) dated 28.06.2017 serial no 18, the tax rate on the Services by way of transportation of goods-
(a) by road except for the services of- (i) a goods transport agency (ii) a courier agency
(b) by Inland waterways
is Nil
From above we can find the extract of the notification which states that :-
Transportation of good by road are exempted under the GST act if the services are not rendered by goods transportation agency (GTA) or a courier agency.
To understand it further we need to know who is a goods transportation agency (GTA)
Source CA SURBHI PUNSHI
