GST Transportation
Logistics · Freight · Passenger

GTA GST, on the GST 2.0 structure effective 22 September 2025: (1) 5% NO ITC (merit rate, forward charge) OR 18% WITH FULL ITC. The old 12%-with-ITC option is gone — the 12% slab was abolished, and the with-ITC option moved to the 18% standard rate. (2) Recipient pays GST under RCM (Reverse Charge Mechanism) for many services. (3) GTA chooses the scheme. (4) BUSINESSES that want full ITC now pay 18%, not 12%. (5) Small operators: 5% no ITC. (6) CONTAINER TRAIN OPERATORS (CTO): also 5% with no ITC or 18% with full ITC — this was 12%. (7) MULTIMODAL transport: 5% with restricted ITC where no air leg is involved; 18% with full ITC where goods move by air. (8) Courier services (DHL, BlueDart): 18% with ITC.

Source: Ministry of Finance / GST Council, FAQs on the decisions of the 56th GST Council (Q58-Q62), rates effective 22 September 2025.

PASSENGER TRANSPORT GST: (1) RADIO TAXI (Ola, Uber): 5% no ITC — and note that from 22 September 2025 passenger transport operators generally may instead opt for 18% with full ITC. (2) AC TRAIN: 5%. (3) NON-AC TRAIN: 0% (exempt). (4) AC BUS (interstate): 5%. (5) Non-AC public bus: 0%. (6) METRO + suburban rail: 0%. (7) AUTO + RICKSHAW: 5%. (8) FLIGHTS: economy 5%, any other class 18% (the 12% business-class rate was abolished with the 12% slab on 22 September 2025 — for air travel there is no option to choose, unlike other passenger transport). (9) Cruise + tourist coach: 5%. CONSUMER pays GST inclusive in fare.

E-WAY BILL: required for INTERSTATE goods movement > ₹50,000. (1) GENERATED online (e-waybillgst.gov.in). (2) Valid for 1-15 days based on distance. (3) BARCODE shown to officials. (4) NON-COMPLIANCE: detention + penalty. (5) INTRASTATE thresholds vary by state. (6) BILL OF SUPPLY for GST-registered. (7) DELIVERY CHALLAN for goods returned. CRITICAL for transporters + e-commerce sellers (Amazon, Flipkart deliveries).

REVERSE CHARGE MECHANISM (RCM) for GTA: (1) Recipient (specified persons) liable to pay GST on GTA services. (2) APPLIES to: companies + registered businesses + cooperatives + factories + societies. (3) 5% rate applies. (4) Recipient claims ITC on GST paid. (5) GTA exempted from collecting/paying. STRATEGIC: business buyers pay GST + claim ITC.

Net impact: revenue-neutral for businesses.

TRANSPORT GST STRATEGY: (1) BUSINESSES: the with-ITC GTA option is now 18%, not 12% — still usually better than 5% no-ITC if you can claim the credit, but run the numbers again because the rate rose. (2) SMALL OPERATORS: 5% no ITC simpler. (3) E-COMMERCE shipping: factor 18% courier GST. (4) RADIO TAXI bookings: 5% built into fare. (5) FLIGHT bookings: economy 5% vs any other class 18% — a bigger gap than the old 5%/12% split. (6) FOREIGN tour TCS 5% separate from hotel/travel GST. (7) MULTI-MODE transport: separate GST per leg. (8) E-WAY BILL compliance mandatory for inter-state movement > ₹50K. ENGAGE CA for logistics + transport business.