This guide is in English for now. The tool itself works in your language.
Bilty › GST for GTA
GST for transporters: reverse charge or forward charge
Transport by a goods transport agency (GTA) has its own GST rules. In most cases the transporter does not charge GST at all; the business paying the freight does.
Who is a GTA?
A person who transports goods by road and issues a consignment note (bilty) is a goods transport agency under GST. A truck owner who only lends the truck without a consignment note is not a GTA; that service has different rules.
Option 1: reverse charge (the usual case)
The GTA charges no GST. The recipient pays 5% GST directly to the government under reverse charge, when the recipient is one of these: a factory, a society, a co-operative society, a GST-registered person, a company (body corporate), a partnership firm or a casual taxable person. The bilty must say who pays the GST.
In the maker choose "Reverse charge 5%" and pick who pays the freight. The bilty prints: "GST on this freight is payable by the consignee under reverse charge (5%)". The screen shows the amount the payer will pay.
Option 2: forward charge
A GTA may instead choose to charge GST itself by filing a yearly declaration on the GST portal before the financial year starts. Then:
- 5% without input tax credit, or
- 18% with input tax credit (this was 12% until 21 September 2025; 18% from 22 September 2025).
Choose the option you have filed. The bilty shows CGST + SGST when the payer is in your state, IGST when in another state.
When GST does not apply
Some transport is exempt, for example of certain farm produce and essential goods, and some recipients are outside reverse charge. The exact list is in the GST exemption notification (12/2017-Central Tax (Rate), as amended). Choose "Exempt / not applicable" when your accountant confirms it.
Which option suits you?
- Most of your customers are registered businesses: reverse charge is simple; they pay the 5% and can usually claim it back.
- You buy trucks, tyres and repairs with GST and want that credit (diesel is outside GST, so it gives no credit): forward charge at 18% may suit, but your freight looks 18% costlier to unregistered customers.