GST Compliance Guide
GST for Goods Transport Agency (GTA) — Complete Guide 2025
This guide explains GST rules for Goods Transport Agencies (GTAs) operating in India, including rate options, Reverse Charge Mechanism (RCM), invoice requirements and ITC eligibility for 2025.
Key fact: GoMyTruck is a Motor Vehicle Aggregator (not a GTA) operating under the Motor Vehicles Aggregator Guidelines 2025. GoMyTruck charges a 5% platform commission. GST on the freight amount is collected separately as per applicable GTA rules for the partner operator. Each booking includes a GST-compliant digital invoice.
What is a Goods Transport Agency (GTA) under GST?
A Goods Transport Agency is defined under GST as any person who provides a service of transport of goods by road and issues a consignment note. The consignment note is the critical document that distinguishes a GTA from a simple truck operator. Under GST, GTA services are treated distinctly from pure freight transport.
GST Rate Options for GTAs in 2025
A GTA has two rate options: (1) 5% GST without Input Tax Credit (ITC) — this is the most common choice for small GTAs, where the recipient pays under RCM. (2) 12% GST with ITC — the GTA charges 12% GST and can claim input tax credits on fuel, vehicle hire and other inputs. The choice must be declared at the start of each financial year and cannot be changed mid-year.
Reverse Charge Mechanism (RCM) for GTA
Under RCM, the recipient of GTA services (not the GTA) is responsible for paying GST. RCM applies when the GTA chooses the 5% rate option and the recipient is a GST-registered business. The recipient must self-invoice, pay GST under RCM, and can claim ITC on it. Unregistered recipients and individual consumers do not attract RCM.
GST Registration Requirement for GTAs
A GTA must register under GST if their annual aggregate turnover exceeds ₹20 lakhs (₹10 lakhs in special category states). Even below this threshold, voluntary registration is advisable to issue proper consignment notes and build trust with large shippers. GTAs operating entirely under RCM (where the recipient pays) may be exempt from mandatory registration in some cases — consult a CA for your specific situation.
Consignment Note — Required for GTA Status
The consignment note is the legal document that triggers GTA status under GST. It must include: name and address of consignor and consignee, registration number of vehicle, origin and destination, road registration number (vehicle permit), and gross weight of consignment. Without a proper consignment note, the transaction may be treated as a pure freight service, not a GTA service.
GST Exemptions for GTA
GTA services are exempt from GST when provided to: (a) agriculturalist for agriculture produce transport, (b) government department, (c) milk, salt, newspaper, organic manure transport — under specific conditions. The threshold exemption of ₹750 per carriage and ₹1,500 per consignment for small consignments also applies.
This guide is for general informational purposes only and does not constitute tax or legal advice. GST rules change frequently — consult a qualified Chartered Accountant for advice specific to your business situation.