GST on Transport of Exempted Goods

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This query is : Resolved

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A cattle feed manufacturer, whose products and raw materials are 0% taxable under GST, is seeking clarification on tax liability for transporting these goods. The consensus is that since the core goods are exempt and the transport doesn't fall under a taxable 'GTA transport' category, the transportation service itself can be treated as exempt. Therefore, no GST is applicable, and it should be shown as an exempt service rather than subject to Reverse Charge Mechanism (RCM).

GST Official

GST Official (Querist)
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18 February 2025 I have a client who is Cattle Feed manufacturer (HSN: 2309) which is 0% taxable under GST.
my query is that he purchase raw agricultural produce from agriculturists which is mostly HUSK again 0% GST taxable good and sell finish cattle feed product that too 0% taxable, so in this case is there any tax liability on transportation of goods arises on him or not? for both inward or outward transportation cases.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 February 2025 No, GST applicable on such transport as it's not a GTA transport.

GST Official

GST Official (Querist)
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19 February 2025 since core trading item is at 0% GST.
Transport can be treated as bundle service and shall be 0%. right?
or should i show freight as 5% RCM service?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 February 2025 Show it under exempt service as it's not a GTA transport where 5% GST under RCM applicable.

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