What is exemption limit for GTA (Goods Transport Agency) in GST?

Posted by: TaxField on 4/8/2020 3:16 PM

Answer : 

It has come to notice that some GST registrants are having confusion about different exemptions of GTA in GST law. 

Some says that if a full truck/tempo load is being sent by the supplier to a recipient then no GST applicable up to transport freight value of Rs.1500, but this is wrong interpretation.

Some says that if one or more consignments/packets are booked by the supplier with transporter then then no GST applicable up to transport freight value of Rs.750, but this is wrong interpretation.

Correct position of GST law :-

As per Sr. No.21 of Notification No.12/2017-CT(Rate) dated 28.6.17 GST is exempted for following cases of GTA-

1. Where transportation freight amount of a consignment in a single carriage is up to Rs.1500 (means different consignors sends their consignments in a vehicle).

2. Where transportation freight amount of all goods of single consignee is up to Rs.750 (means full load of vehicle booked for single consignee).

3. Agriculture produce, Milk, Salt, Food grain including Floor, Pulses, Rice, Organic manure, Newspaper/ Magazines registered with Registrar of Newspapers, Relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; Defense or Military equipment.