GST/GSTIN
GST stands for Goods and Services Tax. It is an indirect tax that has primarily superseded several other indirect taxes in India, including excise duty, VAT, and services tax. The Goods and Services Tax Act was enacted by Parliament on March 29, 2017, and came into effect on July 1, 2017.
Key Points:
The goods and services for personal use are subject to GST.
Customers pay the tax at checkout, which the retailer passes on to the government.
The GST is a worldwide tax that is utilized by a majority of nations.
The GST is typically levied at a single rate throughout the country.
Governments prefer GST on transporters because it streamlines the taxation system and decreases tax evasion.
GST on Transport
GST rate on transportation services GTA (goods transport agency) is taxed at the following rates:
If an ITC (input tax credit) is not claimed: a 5% transit tax
If an ITC is claimed, a 12% GST is levied.
Alternatively, the following GST rates may be applicable:
GST on transportation of goods by road, including trucks (with or without operator): 18% GST is charged.
Freight airplane rental (with or without operator): 18% GST is applied.
- Water vessel rental services, including freight boats (with or without operator): 18% GST applicable transporter registration in GST.
Documents required for GST registration
An aadhar card is essential for the GST rate on transportation services registration.
PAN card (Permanent Account Number).
Account information.
A copy of the electric bill.
Address verification.
Title deed/document (in the case of owned property)
Receipt for property taxes.
The owner’s consent letter/No Objection Certificate (NOC).
Benefits of GST
GST would avoid tax cascading by establishing a comprehensive input tax credit system throughout the supply chain. The seamless availability of input tax credits across products or services at every supply level would allow company processes to be streamlined.
Many items and GST on transporters are either tax-free or have a transportation GST tax of 5% or less.
The impoverished will be compensated.
Small dealers will be able to compete on a level playing field.
With fewer exemptions, the tax system has been simplified.
Products and services will be free to migrate around the nation.
Consumers will gain from more competition among manufacturers and enterprises.
Uniform processes for registration, return filing, tax payment, and tax refunds.
How Can a Transporter File GSTR 1?
Access the GST Portal.
Navigate to Services. Select Returns > Returns Dashboard from the drop-down menu.
It will lead you to the website where you may file your return. Select the fiscal year and month you wish to submit the return from the drop-down option. Select ‘Search’.
Choose between quarterly and monthly GSTR-1 filing.
Step 1:
The page titled “Option form for quarterly return filing by the typical taxpayer” appears.
Step 2:
Indicate if your business’s annual revenue was up to Rs.1.5 crores in the prior fiscal year or if you expect it to be up to that in the current fiscal year.
Then please click the “Submit” button if this is correct.
After submitting your quarterly report, a confirmation window will open. Move forward by tapping the button.
There will be a confirmation of success.
If the answer is “No,” please submit your response.
When the monthly returns are submitted, a confirmation box will show up. Go ahead and push the button.
A success message will appear.
How Can Transporters File a GST Return?
To claim a GST return, the transporter must do the following:
- Make sure that all documentation is in order.
- Online GST on transporter’s registration
- Submit the GST return online.
- Make an online GST on transportation charges.
As a company owner, you should be informed of the procedures for filing a GST return. The procedure may differ significantly depending on the size and structure of your company.
Impact of GST on Logistics
GST on logistics services’ purpose is to establish a united market by reducing internal obstacles and encouraging exports. In the next few years, the Indian logistics sector is predicted to rise by 10-12%. The Goods and Services Tax (GST) rollout will be a significant factor in this rise. The following are the top 7 effects of GST on Indian logistics:
1. Cost reduction: Lowering the total tax burden on companies is one of the key goals of the GST. As a result, firms can claim input tax credits on their inputs and input services, resulting in cheaper logistical costs.
2. Greater efficiency: Since the GST would end the existing tax cascading, the efficiency of the supply chain will increase. As a result, there will be fewer tax compliance points, and interstate commerce will be more uncomplicated.
3. Increased competitiveness: The GST is anticipated to increase the competitiveness of the Indian economy. It would increase the worldwide competitiveness of Indian enterprises and encourage international investment.
4. Simplified tax system: GST would substitute a single, consistent tax rate for the present numerous tax systems. It will simplify the tax code and make it simpler to follow.
5. Better tax compliance: The implementation of the GST is anticipated to lead to better tax compliance. Businesses would have access to a single window via the GST system to submit their taxes and monitor their refunds. As a result, the tax system will be more transparent and better followed.
6. Boost to exports: Exports will likely increase due to the GST since it would make Indian goods more competitive internationally. The administration is also developing a plan to refund exporters for the GST they paid.
7. Job growth: The logistics sector is predicted to gain new positions due to the adoption of the GST. The industry will need to recruit more personnel to fulfill the higher compliance demands and take advantage of the new possibilities made possible by the GST.
Bottom Line
In addition to the previously listed GST advantages, a few others are directly tied to transportation. To begin with, GST has made it incredibly simple for firms to transport their products throughout the nation. GST has also made inventory tracking simpler for firms since they deal with one tax body.
FAQs
Q 1. What is the transportation GST rate?
Ans. Services provided by a goods transport agency (GTA) for the transportation of products (including used home items for personal use) are subject to GST at a rate of 2.5% or 6% CGST (Headings 9965 & 9967, respectively).
Q 2. Is GST is 12% or 18%?
Ans. The GST Council decides the GST Rate Slabs. The GST Council regularly reviews the rate slabs for goods and services. Typically, GST rates are high for luxury goods and low for essentials. India’s GST rates are divided into four categories: 5% GST, 12% GST, 18% GST, and 28% GST.
Q 3. Is GST required for the transporter?
Ans. A transporter is required to register for GST if their total annual revenue exceeds INR 20 lakhs or INR 10 lakhs for a single category. For the fiscal year, GTA is required to pay 12% GST on all services rendered.
Q 4. Does GST apply to transportation costs?
Ans. A freight charge is a fee for transportation or carrying goods. As previously stated, the GST rates for freight costs are (1) 5% (without an input tax credit) and (2) 12%. (with input tax credit). A similar GST on transportation costs may be applied by land, air, or sea.
Q 5. How much does a truck’s GST cost?
Ans. In the following circumstances, 28% GST on automobiles and other vehicles are applicable: Regardless of size, motor vehicles (petrol or diesel) are used to carry passengers, including race cars and station waggons.
