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Frequently asked Questions : GST in Logistics


1. What are various rates of GST applicable to logistics industry?

Description of Service

GST Rate


Transport of goods by rail


with ITC of input services

Transport of passengers by rail (other than sleeper class)


with ITC of input services

Services of goods transport agency (GTA) in relation to transportation of goods [other than used household goods for personal use]




With Full ITC

Services of goods transport agency in relation to transportation of used household goods for personal use.



Transport of goods in a 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 place outside India up to the customs station of clearance in India


with ITC of input services

Transport of goods in containers by rail by any person other than Indian Railways


With Full ITC

WebXpress support all type of businesses & software can be configured for any GST service and relevant rate.

2. Are we required to do state wise billing?

  • Most customers need to take input credit based in place of supply.
  • For transportation place of supply is where goods are received or from where goods are loaded for a paying party
  • Thus, customers have asked transporters to invoice them at booking location or at delivery location
  • This has required transporters to provide state wise invoices to customers

3. As a GTA, can transporter take input credit if we pay 5% GST? Can he set it off against input credit from say repair and maintenance, telecom services etc?

GST council has allowed GTAs to either opt for 5% GST with no input credit OR 12% GST with full input credit. This has to be declared by GTA at beginning of every financial year. In case of GST at 5%, GTA cannot take ANY input credit for any service.

4. If transporter is registered under GST as GTA, is he required to upload invoice data pertaining to GTA services under RCM in our GSTR1?

All companies registered with GST are required to upload invoice data in GST portal. In above case, GST amount will be zero and no GST needs to be paid.

5. If we have unloading charges, handling charges etc. in docket for a GTA, do we need to apply 18% GST on these? Does this mean same docket can have multiple GST rates?

No. Transportation and all allied services under GTA attract either 5% GST with no ITC or 12% GST with full ITC. There is no need to tax separate items in a docket at separate rates.

6. What is definition of Place of Supply from transportation perspective?

Place of supply is location where material is either picked up or delivered.

For example,

  • A company may have factory at say Nagpur
  • This factory may dispatch material from Nagpur to many places in India
  • In this case all transportation started from Nagpur will have place of supply as Nagpur in state of Maharashtra
  • Now- same factory is sourcing material from all over India and asks transporter to ship material say from Ludhiana in Punjab to factory in Nagpur. In this case too- place of supply will be Nagpur
  • Rule of thumb for transporters- place of supply is either booking or delivery location based on where customer has asked to be billed

7. If we are a 3PL with warehousing as well as GTA transportation, can we get set-off against transportation input services such as repair and maintenance?

If you register under 12% GST with full ITC, it is now possible to get set-off against all input costs. But company has to declare the same at the beginning of Financial Year.

8. Can transporter choose not to offer GTA service and offer full service with 18% GST rate? What are advantages and disadvantages?

Transporter has now option to offer 12% GST with full ITC as well, thus no need to offer 18% rate.


5% GST, no ITC

12% GST, full ITC

GST to be paid by



Input credit on services such as repairs, communication etc.


Yes, full credit possible

Invoice amount to include GST



Customers can take input credit

Customer first pay 5% to government. Under reverse charge mechanism and set off against GST payable

Customer can directly take 12% credit

Effect on cash flow

No investment by transporter

Transporter has to pay 12% GST and await bill clearance by customer, thus investment for 60-90 days

Customer impact

Customer work is complicated due to more paper work, need to pay GST on behalf of transporter

Customer work is easier as transporters now aligned with all other suppliers

Type of logistics companies to benefit

Companies who only arrange for transportation- transport operators, brokers

Companies with multiple services such as warehousing, distribution, full truck movement

Transporters with large fleet as they can take all maintenance costs as input credit


DISCLAIMER: The following questions and answers are provided for general information only and may not be completely accurate in every circumstance

WebXpress GST Updates

With the introduction of GST regime, we need to bring about the necessary changes in our accounting and business processes and compliances, and to that effect we seek your cooperation and support.

Registered Name ECFY Consulting Private Limited
Registered Address 501-502, ‘Aabhar’, 5th Road, Khar (West), Mumbai - 400052
ARN Number AA270317027235C
GST Registration Number (Provisional) 27AADCP3157B1ZQ
GST Number of other state (if any) NIL
GST Compliance Contact Person's info Mr. Apurva Mankad
501-502, ‘Aabhar’, 5th Road, Khar (West), Mumbai - 400052
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media - XpressNews - 2017

September 09-15: Zomato acquires logistics startup Runnr September

September 01-08: Maersk expands cold chain capacity to India

August 25-31: TVS Logistics eyes $1-billion revenue in 3 years August

August 15-24: SoftBank in talks to invest in logistics startup Rivigo

August 08-14: Logistics Data Bank project to expand to South India

August 01-07: Post GST, multi-modal transport leads seamless cargo movement

July 22-31: GST - a big boost for the logistics industry July

July 15-21: Tax overhaul reshaping Indian logistics sector

July 08-14: Truck movement picks up pace after GST

July 01-07: Logistics sector to gain most from GST

June 20-27: Logistics stocks soar up to 10% due to GST June

June 13-19: Govt aims to leverage technology to reduce logistics costs

June 06-12: DHL to expand India warehouses on e-commerce boom & GST

June 01-05: All Indian government ports to run on green energy

May 23-29: GST brings 4-5% drop in logistics cost May

May 16-22: 81% items to be taxed below 18% rate under GST

May 09-15: GST to help drive new-age warehouses for India

May 01-08: Government to construct 35 multimodal logistics parks

Apr 25-30: Paytm to raise Rs 12,000 crore from Softbank April

Apr 18-24: Logistics firms to be GST’s biggest beneficiaries

Apr 11-17: CBEC suggests e-way bill for moving goods over Rs.50,000

Apr 01-10: GST In Logistics: A Game Changer

Mar 28-31: Brexit offers opportunities for logistics sector March

Mar 21-27: Ashok Leyland eyes stronger presence in logistics sector

Mar 07-20: GST is coming in July: A primer on India's biggest tax reform

Mar 01-06 : Freight to drive Railways’ business in 2017-18

Feb 21-27 : Volvo eyes long haul transportation segment in India February

Feb 14-20 : International Spare Parts Logistics Market to grow at a CAGR of 5% by 2020

Feb 07-13 : Government to develop economic corridors & logistics parks

Feb 01-06 : Union Budget 2017 extremely positive for logistics sector

Jan 24-30 : Internet Of Things Market To Reach $267B By 2020 January

Jan 17-23 : Novire Banks On SMAC, IoT For Logistics Innovation

Jan 10-16 : DP World targets inland India with logistics centres

Jan 01-09 : Logistics start-ups get FASTags to tackle cash crunch

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