GST on Transport
GST applies to the transport of goods as well as passengers traveling via Road, Rail, and Air. Multiple GST rates starting from nil to 18% applies to transport. GST applies to transportation services for passengers has largely not led to much change in the ticket prices of traveling by Rail, Road or Air. More importantly, an input tax credit is always not applicable if GST on transport that has been charged.
GST on transport of passengers by Air
- 5% GST on economy class air tickets.
- 5% GST on tickets of chartered flights for pilgrimage.
- 12% GST on business class air tickets.
- 18% GST on rental services of aircraft (with or without operator)/chartered flights.
*The above list is indicative and subject to periodic change.
If you are traveling for a business, in that case, a claim can be made on GST on air tickets as an input tax credit for your business. Airlines also can claim input services in case of Economy class passengers. In the case of business class, airlines ITC can be claimed for food items, spare parts as well as other inputs except for fuel.
GST on Transport of passengers by Rail
- 18% GST on AC and First-Class train tickets
- Nil GST on sleeper and general class tickets
- Nil GST on metro tickets/tokens
*The above list is not exhaustive and subject to periodic change.
GST on Transportation of Goods
The transportation of goods carried out by Air, Rail, Road, and Inland waterways incur GST on transport at an applicable rate starting from nil GST. The following are some of the key goods that are exempt from GST on transport*:
- Relief materials designated for victims of man-made/natural calamities, mishaps, accidents, etc.
- Pulses, milk, salt, flour, rice, and other food grains.
- Agricultural produce/products and organic manure.
- Military/defense equipment being transported.
- Newspapers/magazines registered with Registrar of Newspapers.
- If the gross amount charged for goods transport is less than Rs. 1,500.
Exemption or Nil GST on transport is also applicable in the following cases:
- Transport of personal use or household goods
- Transport of goods of unregistered persons
Apart from the above cases, GST on transport of goods by a GTA (Goods Transport Agency) features the following taxation rates:
- 5% GST on transport in case ITC (input tax credit) is not availed
- 12% GST is applicable in case ITC is availed
Alternately, the following GST rate may also be applicable:
- 18% GST is applicable to rental services of road vehicles including trucks (with or without operator)
- 18% GST is applicable to rental services of freight aircraft (with/without operator)
- 18% GST applicable on rental services of water vessels including freight vessels (with/without operator)
*The above lists and rates are indicative and subject to periodic change.
