Author
LoansJagat Team
Read Time
6 Min
16 Jul 2025
Rajesh, a spice wholesaler in Delhi, used a Goods Transport Agency (GTA) to deliver products across India. One day, he noticed GST on his transport bill and decided to understand it better.
He found that:
With this knowledge, Rajesh made smarter choices, ensuring tax compliance and saving costs.
Goods and Services Tax (GST) applies to various transportation services in India, including goods and passenger transport. The rules differ based on the type of service provider and goods transported.
Understanding these provisions helps businesses ensure GST compliance while managing transport costs efficiently.
Read More - GST on Cab Service
Q: Is GST applicable to the transport of goods by road?
Yes, GST is applicable if services are provided by a registered Goods Transport Agency (GTA).
Q: Can I claim an Input Tax Credit (ITC) on transport services?
Yes, ITC is allowed if the service is taxable and used for business, subject to conditions.
Q: Are passenger transport services exempt from GST?
Some are exempt (e.g., metro, and local buses), but AC buses, taxis, and air travel are taxable.
Q: Who pays GST under the reverse charge mechanism (RCM) in transport?
The recipient of GTA services (e.g., a registered business) pays GST under RCM.
Other Important GST Pages | ||||
About the Author
LoansJagat Team
‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.
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