Understanding GST on multimodal transport is essential. Furthermore, Correct GST registration and timely gst return filing are essential for compliance and availing Input Tax Credit under the GST on Multimodal Transport framework.
GST Rate on Multimodal Transport
The GST on multimodal transport is charged at 12% (6% CGST + 6% SGST) for intra-state and 12% IGST for inter-state transport. For example, if you are moving goods from Delhi to Mumbai using truck and rail, you will pay 12% GST and can claim full ITC. In GTA services, you pay only 5% GST however no Input Tax Credit can be claimed in this case. On the other hand, GST on multimodal transport allows full Input Tax Credit, making it easier for businesses involved in logistics and export.
How to claim GST after paying GST Rate on Multimodal Transport?
To operate and claim GST on multimodal transport, businesses must:
- Obtain GST registration.
- Issue tax invoices under SAC 9965.
- Perform timely gst return filing to claim Input Tax Credit.
- Generate E-way bills for eligible consignments.
- Maintain clear documentation, including contracts and handover records.
Overall, timely gst return filing with above requirements you get your tax credit refund available on time.
GST on Multimodal Transport vs GTA
|
Feature |
Multimodal Transport |
GTA |
|
Modes |
Two or more modes | Road only |
|
GST Rate |
12% with ITC |
5% (no ITC) or 12% (with ITC) |
|
Role |
Principal contractor |
Agent with consignment note |
|
E-way Bill |
Required |
Required |
| Export Treatment | Zero-rated |
Conditional |
Exports under GST on Multimodal Transport
You must note that exports are zero-rated under GST on multimodal transport when the destination is outside India. As a result, there are multiple benefits of using Multimodal transport under GST such as:
- Simplified taxation under GST on multimodal transport.
- Full Input Tax Credit on eligible purchases.
- Single invoice reduces paperwork and simplifies GST return filing.
- Improved efficiency in logistics and export compliance.
- Clear differentiation from GTA taxation under GST laws.
FAQs
Which HSN code to use for GST on Multimodal Transport?
You need to use HSN 9965 while invoicing under GST on Multimodal Transport
Can I claim ITC under GST on Multimodal Transport while exporting goods?
Yes, exports under GST on Multimodal Transport are zero-rated, allowing you to claim Input Tax Credit and refunds.
Is a consignment note mandatory for GST on Multimodal Transport?
No, a consignment note is not mandatory under GST, unlike GTA, but contracts and handover documents are required for compliance.
Can I operate without gst registration for multimodal transport services?
No, gst registration is mandatory for providing multimodal transport services under GST.
What is the due date for gst return filing under GST on Multimodal Transport?
GST returns must be filed monthly (GSTR-3B) and quarterly/yearly (GSTR-1/9) as per your turnover and eligibility, ensuring seamless compliance under GST on Multimodal Transport.
Can I opt for the 5% rate under GST on Multimodal Transport?
No, the 5% rate applies to GTA under specific conditions. GST on multimodal transport is uniformly taxed at 12% with ITC.
If you need further assistance or have any doubts, our experts are here to help you. Call us: 8881-069-069.
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