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Transportation plays a vital role in every business—whether it’s moving goods across cities or ferrying passengers from place to place. But under GST, different transportation services attract different tax rates. In this guide, we’ll explore the gst for transportation in India and break it down by type of service.
Transportation services under GST are broadly divided into:
The GST rate, exemptions, and Input Tax Credit rules differ for each.
Goods transport services are provided by various operators, such as:
| Category | GST Rate | ITC Eligibility |
|---|---|---|
| GTA service (with ITC) | 12% | ✅ Yes |
| GTA service (without ITC) | 5% | ❌ No |
| Courier & express parcel services | 18% | ✅ Yes |
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The gst on transportation of household goods is 18%, as it includes both:
These services are treated as composite supply, hence 18% GST applies.
GST also applies to transportation of people by:
| Mode of Transport | GST Rate | GST Rule |
|---|---|---|
| AC Bus (Intercity or Intracity) | 5% | No ITC |
| Non-AC Bus or Stage Carriage | 0% | Fully exempt under GST |
| Cab services (Ola/Uber/local taxis) | 5% or 12% | Depends on aggregator/ITC claim |
| Rail transport (AC classes) | 5% | GST applicable on ticket fare |
| Air travel – economy | 5% | GST on base fare |
| Air travel – business class | 12% | GST on base fare |
| Transportation Type | GST Rate |
|---|---|
| Goods Transport Agency (without ITC) | 5% |
| Goods Transport Agency (with ITC) | 12% |
| Courier & e-commerce logistics | 18% |
| Household goods shifting | 18% |
| AC passenger transport | 5% |
| Non-AC passenger transport | 0% |
| Air (economy/business) | 5% / 12% |
In most GTA transactions, the recipient of services (registered under GST) is liable to pay GST under Reverse Charge Mechanism. However, if the GTA opts for forward charge (12% GST), they can collect GST and pay directly.
Knowing the correct gst for transportation helps businesses plan better, charge correctly, and stay compliant—whether they move goods, passengers, or even households.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.