The GST registration threshold for transport services in India is generally an aggregate turnover of ₹20 lakh per annum (₹10 lakh for special category states). For Goods Transport Agencies (GTAs), registration is mandatory if their turnover exceeds these limits, unless their services are exclusively covered under the reverse charge mechanism (RCM).
GTAs with an annual turnover exceeding ₹20 lakh (or ₹10 lakh for special category states) must register under GST unless their services exclusively fall under the Reverse Charge Mechanism (RCM).
GST on GTA services is generally 5% without ITC or 18% with ITC if the GTA opts to pay tax themselves; otherwise, the recipient pays under reverse charge. GTAs transporting exempt goods (e.g., agricultural produce) or low-value consignments below ₹1,500 may attract 0% GST.
What is the Minimum Turnover Limit for GST Registration? Businesses are required to register for GST and pay tax on their annual turnover if their annual revenue exceeds Rs. 40 lakhs in the case of goods supplied and Rs. 20 lakhs for the supply of services.
GST on transport charges are exempt for certain goods and services related to transport, providing relief for essential items and services. The following categories are exempt: Relief materials for victims of natural or man-made disasters. Military and defense equipment.
What Transport Services Are Subject to GST? Most domestic transport and logistics services are taxable and attract the standard 10% GST.
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.
Businesses with annual sales of Rs. 40 lakhs or more for goods, and Rs. 20 lakhs or more for services, must register for GST. If the turnover exceeds the allowed threshold, there is a penalty for failing to register under GST.
You reach the GST turnover threshold if either: your 'current GST turnover' (your turnover for the current month and the previous 11 months) totals $75,000 or more ($150,000 or more for non-profit organisations)
GST Turnover Limit for Goods Suppliers
If you are supplying goods only, then in normal states the gst threshold limit for registration is ₹ 40 lakh per year. In special category states the limit is typically ₹ 20 lakh.
Under GST 2.0, these services have the same options as other passenger transport: either 5% GST (without input credit) or 18% with input credit (limited to fuel costs).
If the transporter is not registered person under GST it is mandatory for him to get enrolled on e-waybill portal (https://ewaybillgst.gov.in) before generation of the e-way bill.
It includes cargo handling, packing/unpacking, storage/warehousing, freight forwarding, and other related support services. These services play a vital role in ensuring the efficient movement of goods and passengers within the transportation industry.
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). Is RCM applicable on transport? Yes, the Reverse Charge Mechanism (RCM) is applicable on certain transportation services under GST.
GST law mandates you to register for GST and collect tax on your services in case you are a professional service provider. Your aggregate turnover during a financial year must be more than ₹20 lakh (₹10 lakh in case of special category states).
The GST rate on freight by Goods Transport Agencies is 5% (without ITC) or 12% (with ITC) under forward charge and 5% under reverse charge.
If you identify that you have exceeded the threshold amount, then you must register for GST within 21 days. You can also choose to register for GST if you don't meet the registration turnover thresholds. If you choose to register, you must generally stay registered for at least 12 months.
According to Notification No. 10/2019, any business engaged exclusively in the supply of goods must register for GST if the annual turnover exceeds ₹40 lakhs. To qualify for the ₹40 lakh limit, the following conditions must be met: The supplier must not provide any services.
If your GST turnover is under $75,000 and you haven't chosen to register for GST, you don't include GST in your prices. Any invoices you provide need to show that GST was not included. You also can't claim GST credits for your business purchases.
GST Exemption Limit
Under the Goods and Services Tax (GST) regime in India, businesses whose annual revenue exceeds specific thresholds are required to register and pay GST. Currently, the GST Exemption Limit is set at Rs. 40 lakhs for goods and Rs. 20 lakhs for services.
A taxpayer must get a tax audit done if their business's sales, turnover, or gross receipts are over ₹1 crore, or if their profession's earnings exceed ₹50 lakh in a financial year. There are other situations where a tax audit might also be required.
Businesses with a turnover above Rs 40 lakhs involved in the sale of goods or Rs 20 lakhs in the case of services and entities satisfying specific conditions stipulated under Section 24 of the CGST Act, 2017 are compulsorily required to register under GST.
Beginning January 1, 2026, the federal estate, gift, and generation-skipping transfer (GST) tax exemptions will be $15,000,000 per individual and $30,000,000 for married couples, indexed for inflation. Without this legislation, the exemption would have reverted to about $7,000,000 per person.
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.