There is some fluster between goods transport agency and goods transport by road. But there is a thin line of difference between the two terms, which can differ the tax treatment. We will focus on the following terms:

1. What is GTA?

The definition of GTA is provided under clause of notification no. 12/2017-Central tax (Rate) as:

“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.”

From the above definition, it can be said that if goods transporter is issued the consignment note then only he will fall under the category of goods transport agency otherwise not. Consignment note is mandatory for goods transport agency.

2. What is Consignment Note?

In simple terms, a consignment note is a document which is issued by a goods transport agency against the receipt of goods for the purpose of transport by road in a goods carriage. It contains the name of the consignor and consignee, the registration number of the goods carriage in which goods are transported etc.

3. Taxability of Services

Services by way of transportation of goods by road are exempt except for the services of

1. a goods transport agency
2. a courier agency

Thus, transportation of goods by road, if it is a service rendered by goods transport agency is taxable under GST.