22/09/25 revised rate

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From 22nd September 2025, Goods Transport Agency (GTA) services will have a revised GST rate structure. Businesses can opt for a 5% GST rate without claiming Input Tax Credit (ITC), or choose an 18% GST rate with full ITC available. This change, notified by the GST Council, also clarifies multimodal transport, which involves multiple transport modes under a single contract, with varying GST rates depending on whether air transport is included.

Rajkumar Gutti

Rajkumar Gutti (Querist)

07 October 2025 After 22/09/25 what is the gst rate for GTA service.
What is mean by multimodal transport, what is rate
Is there any notification.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

07 October 2025 After 22nd September 2025, the GST rate for Goods Transport Agency (GTA) services is 5% without Input Tax Credit (ITC), with an option to pay 18% GST with full ITC. This means GTA can either choose a lower tax rate of 5% but cannot claim ITC or opt for 18% with ITC available. This change was notified by the GST Council effective from 22nd September 2025 through Notification No. 15/2025 – Central Tax (Rate) dated 17.09.2025.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

07 October 2025 Multimodal transport means the transportation of goods involving two or more modes of transport (e.g., road, rail, water) from the place of acceptance of goods to the place of delivery under a single contract. Under GST, multimodal transport services are charged at 5% GST with restricted ITC when no air transport is involved. However, if air transport is involved in the multimodal transportation, the rate is 18% GST with full ITC. Multimodal transport is treated differently from GTA, which is primarily road transport only.
There are official GST notifications and FAQs issued by the GST Council clarifying these changes. The 56th GST Council meeting rationalized these rates effective from 22nd September 2025, and detailed FAQs provide clarifications on conditions, ITC eligibility, and classification of services.

Rajkumar Gutti

Rajkumar Gutti (Querist)

08 October 2025 धन्यवाद सरजी, Lot of Thanks 🙏🙏🙏👍🌹🌹🌹

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 October 2025 You are welcome.

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