Goods Transport Agency (GTA): The transportation services of goods by road under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (sr.no.18), are free from GST Services (Heading 9965):
(a) By road, except for the services of:
A Goods Transport Agency (GTA)
A courier agency
(b) By internal waterways.
Therefore, till now, the goods transportation by road, entitled as a GTA service, shall not draw GST.
Definition of GTA
Under GST laws, the Goods Transport Agency (GTA) is defined in clause (ze) of notification no.12/2017-Central Tax (Rate) dated 28.06.2017. (ze) ‘goods transport agency’ is explained as a person who bestows service about the transport of goods by road and produces consignment notes, by whatever name called;
Thus, the issuance of a consignment note is considered essential for a supplier of services to be recognised as a GTA. In case the service provider did not issue such a consignment note, the transporter will not fall under the guidelines of the goods transport agency.
Further, the absence of a consignment note for any goods hints that the transporter has possession of the goods and is responsible until the goods are safely delivered to the consignee.
56th GST Council Meeting Update for Goods Transport Agency
| Entry | Current GST Rate | New GST Rate from 22nd September 2025 |
|---|---|---|
| Supply of Transport of goods by GTA | 5% without ITC (RCM/FCM) | 5% without ITC (RCM/FCM) |
| 12% with ITC | 18% with ITC |
What is a Consignment Note?
However, not explained under the GST law, Rule 4B of the erstwhile Service Tax Rules, 1994 defines a consignment note as a document issued via a GST against the receipt of goods for transport. It includes-
- Serial number
- Name of consignor and consignee
- Registration number of the vehicle used
- Details of goods transported
- Origin and destination points
- Person liable for service tax/GST
GST Rates on GTA Services (Post-56th Council)
Previously, GTA services were charged to tax under Notification No. 11/2017-Central Tax (Rate) at either:
- 5% (2.5% CGST + 2.5% SGST) without ITC, or
- 12% (6% CGST + 6% SGST) with ITC (if the GTA opted for this).
According to the 56th GST Council Meeting (Sept 2025), there is now no 12% option. Now the GTA services are being charged to tax at 5% without ITC under forward charge or reverse charge.
If inputs/services are used exclusively for GTA supply, ITC is not available.
ITC reversal u/s 17(2) of the CGST Act, 2017, will be applicable if used partly for GTA and partly for the other taxable supplies.
Liability to Pay GST on GTA Services
Under Notification No. 13/2017-Central Tax (Rate) dated 28.06.2017, liability under Reverse Charge continues for particular recipients (e.g., factories, societies, cooperatives, registered persons, body corporates, partnerships, etc.) when they take GTA services in the taxable territory.
Hence-
If the receiver comes within he specified categories, then the GST is to be paid via the receiver under RCM (Reverse Charge Mechanism) at 5% (no ITC to GTA).
If under such categories the receiver does not come, then the GTA supplier is obligated to pay GST at 5% rate without ITC.
Exempt GTA Services
Under Notification No. 12/2017 (Sr. No. 21 & 22), the below mentioned GTA services remain exempt:
- Transport of agricultural produce
- Consignments ≤ ₹1,500 per carriage
- Consignments ≤ ₹750 per consignee
- Transport of milk, salt, food grains (e.g. rice, flour, pulses)
- Organic manure
- Registered newspapers or magazines
- Relief material for calamities/disasters
- Defence/military equipment
- Hiring of means of transport by GTA
GTA Services Scope
The phrase “in relation to” in the definition cites the scope to comprise the services such as packing, unpacking, loading, unloading, warehousing, etc., when supplied as part of the transportation service.
Crux:
- Not all transport of goods by road is subject to tax, only GTA (with a consignment note).
- After the 56th Council: Only 5% GST (without ITC) is applicable. The 12% with the input tax credit (ITC) option is abolished.
- Tax liability under RCM continues for specified categories of recipients.
- A GTA supplier cannot take ITC; however, recipients under RCM can claim ITC (if used for business).
- Exemptions under Notification No. 12/2017 will not be changed.
