Logistics SectorGTA & E-Way Bill

GST on Logistics & Transport — GTA, Freight, Warehousing & E-Way Bill

Complete guide to GST on logistics: GTA road freight (5%/12%), reverse charge on transport, rail/air/sea freight rates, courier services, warehousing, cold storage exemptions, E-Way Bill requirements, and multimodal transport taxation.

5%/12%

GTA (Road Freight)

18%

Courier Services

5%

Rail Freight

18%

Air Freight

Exempt/5%

Sea Freight (Intl)

18%

Warehousing

>₹50K

E-Way Bill

12%

Multimodal

GST Framework for Logistics

GTA — Goods Transport Agency

Road freight by GTAs (truck operators issuing consignment notes) has two options: (1) 5% GST without ITC — GTA pays under forward charge, or (2) 12% GST with full ITC. GTAs must opt for 12% at start of financial year if they want ITC benefits. Reverse Charge applies when GTA supplies to specified recipients (factories, companies, cooperatives).

Reverse Charge on Transport

GTA services to specified recipients attract RCM: factories, registered societies, cooperative societies, companies (including LLPs), body corporates, partnership firms, casual taxable persons, and government entities. The recipient pays GST at 5% under RCM. Unregistered individual consignors/consignees are exempt.

Rail Freight — 5% GST

Transport of goods by Indian Railways attracts 5% GST (without ITC). Transport of passengers by railways: AC class at 5%, non-AC (sleeper, general) exempt. Railway siding charges, demurrage, and wharfage also at 18%. Rail containers (CONCOR) treated as multimodal transport at 12%.

Air Cargo & Courier

Air freight charges for domestic cargo attract 18% GST. International air freight for exports is zero-rated (exempt). Courier services (Delhivery, BlueDart, DTDC) attract 18% GST uniformly. Express delivery surcharges also taxed at 18%. Courier aggregators must register in every state from where they supply.

Warehousing & Cold Storage

General warehousing services attract 18% GST. Cold storage for agricultural produce: exempt (Notification 12/2017). Warehousing of other goods: 18%. Storage and warehousing of jute, cotton, and other raw materials for agriculture: exempt. Loading/unloading at warehouse: 18%.

E-Way Bill for Logistics

E-Way Bill mandatory for movement of goods exceeding ₹50,000 in value. Valid for 1 day per 200 km (over-dimensional cargo: 1 day per 20 km). Generated on ewaybillgst.gov.in. Part-A (supply details) + Part-B (vehicle details). Transporter or consignor/consignee can generate. Validity can be extended before expiry.

Logistics & Transport GST Rates

ServiceSAC CodeGST RateNotes
GTA road freight (without ITC)99655%No ITC claim by GTA
GTA road freight (with ITC)996512%Full ITC available to GTA
GTA under Reverse Charge99655% RCMRecipient pays GST
Rail freight (goods)99655%Without ITC
Air freight (domestic)996518%Full ITC available
Air freight (international export)9965Zero-ratedExempt for exports
Sea freight (international import)99655%IGST on CIF component
Courier services996818%All courier/express
Multimodal transport996512%Combined rail+road+sea
Warehousing (general)996718%Storage services
Cold storage (agriculture)9967ExemptFarm produce only
Passenger transport (AC bus)99645%Without ITC

Frequently Asked Questions

What is the GST rate on road freight/trucking?
Road freight by GTAs (Goods Transport Agencies) has two options: (1) 5% without ITC — the GTA cannot claim input tax credit on diesel, tyres, etc., or (2) 12% with full ITC — the GTA can claim all input credits. GTAs must choose their rate at the start of each financial year. Under RCM, recipients pay 5%.
When does Reverse Charge apply on transport?
Reverse Charge on GTA services applies when the recipient is: a factory, a company/LLP, a registered society, a cooperative society, a body corporate, a partnership firm, a casual taxable person, or the government. If the consignor/consignee is an unregistered individual, the supply is exempt from GST.
Is E-Way Bill mandatory for all goods movement?
E-Way Bill is mandatory when goods value exceeds ₹50,000 and goods are being moved (inter-state or intra-state). Exemptions: movement within 50 km from consignor for certain goods, non-motorized conveyance, specified goods (e.g., LPG, kerosene, used personal effects). Some states have reduced the threshold to ₹1 lakh or even removed it for intra-state.
How is international shipping/sea freight taxed?
International shipping: Export freight is zero-rated (no GST). Import freight: earlier 5% IGST was levied on ocean freight, but the Supreme Court struck this down (2022) as unconstitutional (double taxation — already part of CIF value on which IGST is paid at customs). Currently, import ocean freight is effectively not separately taxed.

Logistics GST & E-Way Bill — Automated

Laabam.One handles GTA invoicing (5%/12% option), reverse charge on freight, E-Way Bill generation via API, multi-modal transport billing, and warehouse GST compliance automatically.

Explore GST Law