The implementation and adherence of GST Law in India is a complicated and cumbersome exercise.  The ordeal of understanding and assessing GST rates was all more difficult for the transport industry as many of them were involved in providing more than a single mode transportation services.

Burdened by these compliance difficulties, The Society of Indian Automobile Manufacturers (SIAM) had approached the logistics division of the Commerce Ministry raising issues faced by the industry by the non-availability of a separate category of service and GST rate for multi-modal transportation.

In response to this, the CBIC issued notification 13/2018- Central Tax Rate on 26-July-2018 prescribing single rate of 6% (CGST) for all goods and not just vehicle.

What is Multi-Modal Transportation?

Multi-modal transportation means carriage of goods from at-least 2 different modes of transport from the place of acceptance of goods to the place of delivery of goods.

Who is a Multi-Modal Transporter?

A person who enters into a contract to perform multi-modal transportation against freight by road, air, inland waterways or sea, and acts as a principle and not agent either of consigner or consignee.

Multi-modal transporter should assume responsibility of performance.

Determination of type of tax for multi-modal transporter

1. If the location of supplier and place of supply are same – CGST and SGST
2. In any other case- IGST

What would be place of supply for multi-modal transporter?

The place of supply would be determined:

1. As per section 12(8): Receiver and supplier are in India
2. As per section 13(9): Receiver or supplier are in India
3. Where the destination of goods is outside India, Place of supply shall be the place of destination.

1. Receiver and supplier are in India

Example: In case of a multi modal transporter, if Customer ‘X’, who is a registered person transfers goods to transporter ‘Y’ at his factory gate, place of supply will be location of Customer ‘X’.

Example: In case of customer is unregistered, say Mr. ‘Z’ who is located in Chennai hands over the goods to the transporter at the place of the transporter say Telangana, the place of supply will be Telangana.

1. Receiver or supplier are in India

1. The place of supply shall be destination of goods.
2. Cases where recipient of goods is outside but requires goods to be transported from place in India to place in India.

Example: Customer ‘A’ who is located outside India wants gods to be transported from Andhra Pradesh to Delhi and used multiple modes of transportation. The place of supply will be Delhi, as its destination of goods.