Many public transport services in India are exempt from GST (0% rate) to keep travel affordable, specifically including non-AC buses, metro, monorail, tramway, and inland waterways. Metered cabs and auto-rickshaws, including e-rickshaws, are also generally exempt. However, air-conditioned (AC) buses and radio taxis attract a 5% GST rate.
Most domestic transport and logistics services are taxable and attract the standard 10% GST. This includes: Freight and cargo handling within Australia.
List of exempted goods under GST in India:
The GST rate on transportation services varies depending on the mode of transport and the nature of the service provided. Generally, the GST rate on transportation of goods by road is 5% (with no input tax credit), while the GST rate on passenger transportation services by road is 5% (with input tax credit).
Step 1: Go to the “Sale Invoice” menu and click the “Add New” button to start a new invoice. Step 2: On the invoice page, click the “Add Additional Charges” button in the Product Items section. Step 3: Enter the details of the extra charges, like transport or packaging costs, and click “Save”.
The international flight is GST-free. The domestic accommodation and tour are taxable. The agency's service fee might be partially GST-free (for the international portion) and partially taxable (for the domestic elements).
Under this temporary measure, grocery items like sandwiches, salads, energy bars, non-alcoholic beverages like coffee, tea, juice, and even certain alcoholic beverages like beer, wine, and cider will be exempt from GST/HST. However, alcoholic spirits like vodka, whiskey, and rum are not covered by the tax relief.
Customers do not pay GST on goods and services that are GST‑free such as basic food, many medical and health services, some education courses, childcare, certain medical aids, and exports.
Do Ola and Uber charge GST? Yes. They collect 5% GST and include it in your fare summary.
These include bank transfers between accounts, stamp duty, depreciation and salary/wages. These are purchases/sales that have a 0% GST rate. Examples include, purchasing items from overseas (exports); purchasing items from within Australia that are not subject to GST, eg. fresh food, some education.
Subtracting GST from Price
To calculate how much GST was included in the price, divide the total price by 11 ($1000∕11=$90.91). To calculate the price without GST, divide the price by 1.1 ($1000∕1.1=$909.09).
Certain goods and services are exempt from GST due to their essential nature. This exemption applies based on the type of supply, not the supplier. Example: Healthcare services, educational services, and public utility services (e.g., water supply) are exempt from GST.
Rule 55 – Transportation of goods without issue of invoice
(4) Where the goods being transported are for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal of goods for the purpose of supply, the supplier shall issue a tax invoice after delivery of goods.
Benefits of GST for Logistics and Transportation
Reduced paperwork and faster transit. Cost reduction in warehousing and transportation. Greater formalization of the sector, encouraging investment. Enhanced competitiveness for businesses, especially exporters.
Common Examples of GST Exempt Transactions:
Financial services – Most banking services, interest payments, and insurance premiums. Residential rent – Rental income from residential properties. Donated goods and services – Items or services that are given away without payment.
Excluding GST from GST-free sales
Most basic foods. Some education courses, course materials and related excursions or field trips. Some medical, health and care services. Some medicines.
Supply based: This type of exemption is usually applicable to suppliers involved in public-welfare or non-profit activities, irrespective of what they are selling. Example: Public utility services like water supply and healthcare related supplies are exempt from GST under this category.
The credit is designed to assist Canadians with low-to-moderate incomes. Single individuals making $52,255 or more (before tax) are not entitled to the credit. A married couple with four children cannot exceed an annual net income of $69,015.
Nil-rated supply is a type of GST supply where the GST rate is also 0%, but the supplier cannot claim the input tax credit. Non-GST supply or non-taxable supply is a type of GST supply that does not attract any GST, and exempt supply is a type of GST supply that is exempt from GST.
India's GST regime is undergoing a landmark transformation with the 56th GST Council meeting unveiling GST 2.0 - next-generation reforms simplifying tax slabs to 5%, 18%, and 40%. Effective from September 22, 2025, these reforms aim to ease compliance, boost consumption, and fuel economic growth.
The GST on tours and travels depends on whether you claim Input Tax Credit (ITC). If you opt out of ITC, a 5% GST rate applies. However, if you claim ITC, the applicable rate is 18%.
You can claim a refund if:
Notably, most online ticketing platforms, such as BookMyShow or PayTM, already include the applicable GST in the displayed ticket prices. This means that consumers do not have to worry about calculating the GST separately while making their bookings.