Streamline your tax compliance with our expert-assisted GSTR 9 & 9C services @ ₹14,999/-

Tax efficiency, interest avoidance, and financial control with advance payment @ 4999/-

Get to Know About Goods Transport Agency (GTA) under GST

The article talks about the factors related to GST transportation and how such calculations can affect the citizens while paying taxes.

The whole concept of goods and services tax or GST is complicated if you think about it initially. But analyse it in a lighter vein and try to understand the basic fine-tunings of its aims. You will find that it has a significant role in filling in the government coffer. Indeed, levying some charges on roads, goods and transport services has always been a bone of contention in important sectors of the country. The Finance Act of 1997 is crucial in this direction. In fact, in 2004, further revisions were made to the transportation of goods by using the roadways.  However, under the GST Tax Credit, the services that concern the transportation of goods via roadways (except those under goods transport agency) are sometimes exempted. There are selected services that are not considered under the purview of GST. These include all those services by way of transportation of goods (reference: heading 9965), for instance, inland waterway transportation, courier agency and a goods transport agency. All these can be exempted from the GTA.

What Service of Transportation of Goods Is Exempt Under Gst?

  • If there is agricultural produce carried from one place to another in a goods carriage
  • There is a certain category of goods that are moved in a single carriage, and as transportation charge as a part of the single consignment, that does not go beyond fifteen hundred rupees
  • If a goods carriage carries milk, salt or any food grain, organic fertilisers, or newspapers and magazines that have an authentic and valid RNI number.
  • Carriages that carry relief materials for an emergency, for the victims and their family members who died in an accident, flood, natural disaster, or any other kind of mishap. 
  • Carriage for transportation containing equipment related to the defence or military field. Make all your Doubts Clear with our Panel for Online GST Services.

What Is GTA Consignment Note All About?

The word GTA basically means ‘Goods Transport Agency’. This includes any individual in charge of providing service related to goods and commodity transportation via road and has the power to issue a consignment note about the same, by para 2 of notification no. 12/2017-IT (rate) dated around June 2017 and came to be established with proper effect from July 2017.

Suppose you wonder what a consignment note is. In that case, you will see that it does not have an adequate definition as such in the notification of 12/ 2017 of Central Tax. It is paper, a kind of document that the Goods Transport Agency issues on receiving the goods before the actual transportation process is carried on.

This is related to carrying the goods in a carriage with a valid number, serially numbered. It also has clear and proper information about the consigner, consignee, details of the goods that are moved from one place to another, the registration number of the vehicle, the place from which the consignment is loaded and the targeted destination, along with who is in charge of paying the service tax-the consignor, consignee and the actual goods transport agency. 

You can go through the data given below to understand the rate of GST under goods transport agency..

Follow the Points Given Below to Understand the Rates of Gst Better.

  1. If the carriage contains natural and perishable commodities like milk, salt or manure, GST rates shall not apply. 
  2. Carrying goods via a single carriage where the amount paid for transportation is below fifteen hundred, GST rates can never be applicable
  3. Carrying goods where the transportation of a single consignment does not go up to above 750, the total GST rates are not applicable. 
  4. For any other type of good other than that mentioned above, there is a 5% GST applicable. For instance, in the case of products manufactured by ITC, a 5% of GST application may be valid. However, the rates can vary based on the quality of products from the same brand or other brands.

Can GST Rates Be Reversed?

In this connection, it is also noting worthwhile that certain kinds of enterprises are allowed to pay GST, which falls under the category of reverse charge:

  • Any factory that has a valid registration under the Factories Act of 1948
  • Any society that has a valid Society Registration Act (1860)
  • Any cooperative society having all the legal clauses fulfilled
  • An individual having a proper GST registration
  • A corporate body that is set up with a proper legal clause
  • Any partnership firm that has all the legal papers for operation

Our GST Percentage Calculator can help you determine your GST owed before registering.

Who Is Required to Register Under GST?

You can go through the following list to understand which specific individuals, organisations and agencies should be registered under GST:

  • Those individuals who are registered under the purview of Pre-GST Law (including Excise and VAT)
  • All those business companies and small-scale corporates who have an annual turnover starting from 10 lakhs and going to 30 and 40 lakhs
  • If there is any non-resident of India but one who falls under the category of being taxable
  • Agents of all kinds of suppliers and input service distribution companies and agencies
  • Those who are genuinely entitled to be under the reverse charge mechanism
  • Every e-commerce aggregator
  • If there is database access, following up on data and information sharing by a person living outside India, and who supplies any kind of information to the person in India. But if that person in India falls under the category of tax, and is registered therein, then he can be exempted


The relevance of GST and GTA is immense to follow the right mechanism of transparency in a tax return and filing process. All kinds of road transport do not fall under the category of goods transport agency. A proper consignment note should always be before the consignment starts from one place to another.

If any person is under the taxable territory, they must also pay GST. The value of the consignment note is significant in this direction. This note indicates that any kind of lien on the goods and equipment has already been transferred to one who transports. The whole responsibility of delivering the goods in an undamaged condition to the consignee or the receiver depends only on the transporter.

Subscribe to our newsletter blogs

Back to top button


Remove Adblocker Extension