GST Rate for Goods Transport Services

The GST Council linked all GST rates to Service Accounting Codes to classify services (SAC Code). The SAC Codes will be used by the Service Tax Department to levy the tax for the various kinds of services. The GST Council set the GST rates for Goods Transport Services that are linked to SAC Codes at 5%, 12%, and 18%, respectively.

GST Rate for Goods Transport Services

GST Registration for Transporters

In India, all taxable persons engaged in the business of good transportation must register for GST, regardless of their annual sales volume. Persons or firms offering goods transportation services must also be conversant with the GST E-Way Bill laws and regulations.

Land Transport Services of Goods

There is a specific heading for land transport services of commodities in the SAC code, under the group goods transport services. This group includes the services listed below, along with their SAC codes.

SAC Code 996511 – Refrigerated vehicles, trucks, trailers, man or animal-drawn vehicles, or any other vehicles are used to convey goods such as letters, parcels, live animals, household and office equipment, containers, and other items.

SAC Code 996512 – Letters, parcels, live animals, household & office furniture, intermodal containers, bulk freight, and other goods are transported by rail.

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

There is a specific heading for water transport services of commodities in the SAC code, under the group goods transport services. This group includes the services listed below, along with their SAC codes.

Refrigeration vessels, tankers, bulk cargo vessels, container ships, and other coastal and transoceanic (overseas) water transport services of goods by refrigerator vessels, tankers, bulk cargo vessels, container ships, etc. SAC Code 996521 – Coastal and transoceanic (overseas) water transport services of goods by refrigerator vessels, tankers, bulk cargo vessels, container ships,

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

Air Transport Services of Goods

There is a specific heading for air transport services of commodities in the SAC code, under the group goods transport services. This group includes the services listed below, along with 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

Rail freight is subject to a 5% GST, with input tax credits available on input services.

Services provided by a goods transport agency (GTA) in connection with the transportation of commodities and the shipping of used home goods for personal use are subject to a 5% GST with no input tax credit available.

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 non-taxable territory by way of transportation of goods by a vessel from a location outside India to the customs station of clearance in India, is taxable at 5% GST with an input tax credit of input services. This would apply to services related to commodities importation into India.

Any individual who transports products in containers by rail, other than Indian Railways, is subject to a 12 percent GST rate with a full input tax credit.

If the GST rate for the services has not been specifically indicated above, the 18 percent GST rate with a full input tax credit will apply.