GST Rate for Goods Transport Services

The GST Council has connected all GST rates to service accounting codes (SAC codes). The Service Tax Department will utilize the SAC Codes to ascertain the taxes payable on specific services. The equivalent GST rates for goods transport services associated with SAC codes were set by the GST Council at 5%, 12%, and 18%.

GST Rate for Goods Transport Services

GST Registration for Transporters

No of their annual sales volume, all taxable individuals working in the good transportation industry in India are required to register for GST. The laws and rules governing the GST E-Way Bill must also be understood by those who provide goods and transportation services.

Land Transport Services of Goods

Under the topic of goods transport services, the SAC code provides a specific heading for commodities land transport services. The services mentioned below, together with their SAC codes, are included in this category.

SAC Code 996511 – Use of Refrigerated Vehicles, Trucks, Trailers, Man or Animal Drawn Vehicles, or Any Other Vehicles for the Transportation of Letters, Parcels, Live Animals, Household and Office Equipment, Containers, and Other Goods

Letters, packages, live animals, furnishings for homes and offices, intermodal containers, bulk freight, and other items are carried by rail, according to SAC Code 996512.

SAC Code 996513 – Pipeline transportation of petroleum and natural gas, water, sewerage, and other products.

Other land transport services for commodities (SAC Code 996519).

Water Transport Services of Goods

The SAC code designates a special heading for commodities water transport services within the area of goods transport services. The services mentioned below, together with their SAC codes, are included in this category.

Container ships, bulk cargo vessels, refrigeration boats, tankers, and other coastal and transoceanic (international) water transport services for goods SAC Code 996521 – Coastal and transoceanic (international) water transport of goods via tankers, bulk carriers, container ships, refrigerated boats, etc.

SAC Code 996522 — Refrigeration vessels, tankers, and other vessels provide inland water transportation services for products.

Air Transport Services of Goods

The SAC code has a particular heading for commodity air transport services under the category of goods transport services. This category comprises the services listed below, as well as their SAC codes.

SAC Code 996531 – Letters, parcels, and other products are transported by air.

SAC Code 996532 – Freight transportation services in space.

GST Rate for Goods Transport Services

GST Rate for Goods Transport Services

A 5 percent GST is applied on rail freight, and input tax credits on services are available.

For services provided by a goods transport agency (GTA) in connection with the shipment of used home items for personal use and the transportation of commodities, there is no applicable input tax credit.

A 5% GST with an input tax credit for input services is applicable to the transportation of goods by vessel, including services provided or agreed to be provided by a person located in non-taxable territory to a person located in the non-taxable territory through the transportation of goods by a vessel from a location outside India to the customs station of clearance in India. This includes services for bringing commodities into India.

Other than Indian Railways, everyone who ships goods in containers by rail is subject to a 12.5% GST rate with a full input tax credit.

The 18% GST rate with a full input tax credit will be used if the GST rate for the services has not been specified above.