Exemption related to transportation of goods [ Entry no. 18,19,19A,19B,20,21,21A, & 21B ] - GST Ready Reckoner - GST

Mega Exemption Notification No. 12/2017-Central Tax (rate) dated 28.06.2017 Exemption Entry 18 Services by way of transportation of goods Services by way of transportation of goods are exempt by road except the services of a goods transportation agency; a courier agency; By Inland Waterway Mega Exemption Notification No. 12/2017-Central Tax (rate) dated 28.06.2017 defines the following terms: (u) courier agency means any person engaged in the door-to-door transportation of time-sensitive documents, goods or articles utilising the services of a person, either directly or indirectly, to carry or accompany such documents, goods or articles; (ze) goods transport agency means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called; (zi) inland waterway means national waterways as defined in clause (h) of section 2 of the Inland Waterways Authority of India Act, 1985 (82 of 1985) or other waterway on any inland water, as defined in clause (b) of section 2 of the Inland Vessels Act, 1917 (1 of 1917); Note : Truck owners usually give their trucks on hire to Goods transport agencies for transportation of goods. A transaction of allowing another person to use the goods, without giving legal right of possession and effective control, not being treated as sale of goods, is treated as service which is also included as a declared service . This would not be GTA but exemption is available Example Raju has transported wheat to APMC by road to another city. It is exempt from tax Exemption Entry no. 19/19A/19B Transportation of Goods by aircraft or by vessel Import of goods by aircraft :- Services provided by way of transportation of goods by an aircraft from a place outside India upto the customs station of clearance in India is exempt . [ Entry No. 19] Export of Goods by aircraft:- Services provided by way of transportation of goods by an aircraft from Customs station of clearance in India to a place outside India. [Entry No. 19A] Nothing contained in this serial number shall apply after the 30 th day of September 2022. Export of Goods by Vessel:- Services provided by way of transportation of goods by an aircraft from Customs station of clearance in India to a place outside India. [Entry No. 19B] Note :- Nothing contained in this serial number shall apply after the 30 th day of September 2022. Scope The scope of the exemption is subject to some restrictions which can be easily understood from the table given below: Who is eligible What specifically is exempt Limits for exemption Any person Transportation of goods by an Aircraft from a place outside India upto the customs station of clearance in India The exemption is only upto the customs station of clearance in India. In case the goods after Custom clearance are further transported through an Aircraft, the same would be taxable . Explanation ABC Ltd has its offices at Chennai Delhi. ABC Ltd Imported goods by an aircraft from a place outside India. Goods landed at Delhi and transported to Chennai. In this case if the goods are to be cleared at Chennai customs station then transportation from Delhi to Chennai is also exempt but in case the goods need to be cleared at Delhi customs station than transportation from Delhi to Chennai after custom clearance is taxable. Example Ramesh Enterprise has a business in Germany and sent goods by aircraft to India. Goods are being cleared at customs stations in India. Such transportation services shall be exempt. Exemption Entry 20 Transportation by rail or vessel Services by way of transportation by rail or a vessel from one place in India to another of the following specified goods shall be exempt relief materials meant for victims of natural or man-made disasters, calamities, accidents, or mishap; defence or military equipment s; newspaper or magazines registered with the Registrar of Newspapers; railway equipment s or materials; [ Omitted by Notification No. 04/2022 -Central Tax (Rate) dated 13-07-2022 w.e.f. 18-07-2022 ] agricultural produce; milk, salt and food grain including flours, pulses and rice; and organic manure Scope The scope of the exemption is subject to some restrictions which can be easily understood from the below table: Who is eligible What specifically is exempt Limits for exemption. Any person Transportation by way of Rail or a Vessel within India. Exemption only in relation to goods specified above Example: Transportation of by way of Rail or a Vessel within India: GST Relief materials to flood affected areas Not leviable Newspaper or magazines registered with the Registrar of Newspapers Not leviable Milk. Not leviable Defense or military equipment s Not leviable Chemical fertilizers by rail Leviable Cotton, ginned, baled. Leviable Exemption Entry 21 Transportation by GTA Services provided by a goods transport agency, by way of transport in a goods carriage of - agricultural produce; goods, where consideration charged for the transportation of goods on a consignment transported in a single carriage does not exceed Rs. 1500/- [ Omitted by Notification No. 04/2022 -Central Tax (Rate) dated 13-07-2022 w.e.f. 18-07-2022 ] goods, where consideration charged for transportation of all such goods for a single consignee does not exceed Rs. 750/- [ Omitted by Notification No. 04/2022 -Central Tax (Rate) dated 13-07-2022 w.e.f. 18-07-2022 ] milk, salt and food grain including flour, pulses and rice; organic manure; newspaper or magazines registered with the Registrar of Newspapers; relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or defence or military equipments. Exemption Entry 21A : Services provided by a goods transport agency to an unregistered person , including an unregistered casual taxable person, other than the following recipients, namely: any factory registered under or governed by the Factories Act, 1948; or any Society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India; or any Co-operative Society established by or under any law for the time being in force; or any body corporate established, by or under any law for the time being in force; or any partnership firm whether registered or not under any law including association of persons; any casual taxable person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act. Scope The scope of the exemption is subject to some restrictions which can be easily understood from the following table: Who is eligible What specifically is exempt Limits for Exemption Goods Transport Agent Service provided by a goods transport agency to unregistered person including unregistered casual taxable person The specified entities are not eligible for exemption and they are liable to pay GST under RCM. Example Jagdish Transport is providing GTA service to Mr. Mankad, an individual who is not registered under GST law. Jagdish Transport is exempted from payment of GST on this supply. Exemption Entry 21B Services provided by GTA to Government Services provided by a goods transport agency, by way of transport of goods in a goods carriage, to , - (a) a Department or Establishment of the Central Government or State Government or Union territory; or (b) local authority; or (c) Governmental agencies, which has taken registration under the CGST Act, 2017 only for the purpose of deducting tax under Section 51 and not for making a taxable supply of goods or services.