GST TREATMENT OF TRANSPORT

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The sale and purchase of transport vehicles are not exempt from GST. Businesses can register for GST under either the normal or composition scheme, depending on their turnover. For services involving the transportation of goods by road, GST is generally not payable, with the exception of services provided by a goods transportation agency, which are taxable at 12% with input tax credit or 5% without.

sachin Alwadhi

sachin Alwadhi (Querist)
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07 February 2020 Hi

One of my client related to transportation(Sales purchase of transport vehicle) wanna to take gst no.Please guide what will be treatment of gst on same.Whether will cover in Taxable or exempted supply under gst?

Thanks

CA Anita Bhadra

CA Anita Bhadra (Expert)
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07 February 2020 The sale and purchase of transport vehicles is not an exempted supply under GST. Depends on his aggregate turnover, he can take GST registration under composition or normal.

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sachin Alwadhi

sachin Alwadhi (Querist)
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08 February 2020 Thanks for reply. Further one more query if client owned his own transport for carrying goods from one place to another then then it will taxable with 12% gst with input Tax credit and 5% without input credit.Pls guide will it be correct treatment?

CA Anita Bhadra

CA Anita Bhadra (Expert)
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08 February 2020 As per GST Law 2017, there is no GST payable on Services by way of transportation of goods by road except the services of a goods transportation agency.

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