GST Rates for Transport 2026: 5%, 18% and Exempt Services

By Bilty Freight Desk · Published 23 Oct 2026 · Updated 23 Oct 2026

Key Takeaways & Executive Summary

Since 22 September 2025, GST has three main rates (5%, 18% and 40%) plus exempt supplies. Road freight by a goods transport agency is taxed at 5% (reverse charge, or forward charge without input tax credit) or 18% (forward charge with input tax credit; it was 12% before). Freight on exempt goods, and plain transport without a consignment note, is exempt.

1. The rate structure after 22 September 2025

After the 56th GST Council meeting, most goods and services moved to just two main rates, 5% and 18%, with a separate 40% rate for a short list of items. The old 12% and 28% slabs were removed for almost all items. Exempt (0%) supplies continue. This summary of the structure is as widely reported; for the rate on a particular item, read the rate notification itself (Notification 09/2025-Central Tax (Rate) is the one that carries the goods schedule). For a transporter only three outcomes matter: 5%, 18% and exempt. None of the freight services in this guide is taxed at 40%. The one rate change that hits transporters directly is on goods transport agency (GTA) services under forward charge with input tax credit: 12% became 18% from 22 September 2025 (Notification 15/2025-Central Tax (Rate), dated 17 September 2025). The 5% options did not change.

2. GTA freight: three ways to charge GST

A goods transport agency is any person who provides road transport of goods and issues a consignment note (bilty / LR), by whatever name called. For that service there are three outcomes: 1. Reverse charge (RCM), 5%: the GTA issues a bill without tax and the recipient pays the 5%. The GTA takes no input tax credit. There is no 18% reverse charge. 2. Forward charge without ITC, 5%: the GTA charges 5% on its invoice and deposits it, with no input tax credit on its purchases. 3. Forward charge with ITC, 18%: the GTA charges 18% (9% CGST + 9% SGST, or 18% IGST) and can claim input tax credit on eligible inputs and services. This was 12% until 21 September 2025. Who pays under reverse charge is fixed by Notification 13/2017: a factory, society, co-operative society, GST-registered person, body corporate, partnership or AOP, or casual taxable person. It does not apply if the GTA has opted for forward charge and printed the declaration on the invoice. A GTA opts for forward charge on the GST portal (Annexure V, filed between 1 January and 31 March before the financial year); the option continues until the GTA files Annexure VI. The full mechanism is in our GST on GTA guide.

3. When freight is exempt

Three situations are exempt under Notifications 12/2017 and 04/2022: 1. Exempt goods. GTA transport of agricultural produce; milk, salt and food grain including flour, pulses and rice; organic manure; registered newspapers and magazines; relief material for disasters; and defence or military equipment (Notification 12/2017, serial 21). 2. An unregistered individual recipient. GTA service to an unregistered person who is not in the reverse-charge list (for example a family moving house) is exempt (serial 21A). 3. Road transport without a consignment note. Plain transport of goods by road by someone who is not a GTA and not a courier agency (serial 18). One thing to drop from older articles: the exemptions for freight up to Rs 1,500 per consignment and Rs 750 per consignee were removed from 18 July 2022 (Notification 04/2022). Many blogs still list them. Exemption is not the same as nil-rated paperwork: you still issue a bilty, and your bill should say which exemption you are claiming.

4. Truck rental, loading and your own software

Renting a goods carriage with fuel included (heading 9966) is taxed at 5% with limited input tax credit, or at 18% (it was 12%) from 22 September 2025 under Notification 15/2025, serial 10(ia). Supporting transport services that are not GTA freight, such as cargo handling and warehousing (heading 9967), are taxed at 18% under Notification 11/2017. And for a transporter running Bilty or any other software: the subscription is a software service at 18% GST (heading 9983 under Notification 11/2017, serial 21(ii)). If you are registered, that GST is input tax credit you can claim when you use it for taxable business. Diesel is outside GST today, so there is no input tax credit on it and no GST on your fuel bill. This guide does not give the GST rates for trucks, tyres or spare parts, so check the rate notification or your supplier invoice for the item you buy.

5. How to pick the right rate on a bill

Work through these questions in order: 1. Are you a goods transport agency, that is, do you issue a bilty / LR for road transport of goods? If not, and it is plain transport without a consignment note, it is exempt. 2. Is the cargo on the exempt goods list (agricultural produce, milk, salt, food grain, and so on)? Then it is exempt. 3. Is the recipient an unregistered individual outside the reverse-charge list? Then it is exempt. 4. Otherwise, which option did you file for the year? If you did not opt for forward charge, a registered business recipient pays 5% under reverse charge and your bill carries no tax. If you opted for forward charge, charge 5% (no ITC) or 18% (with ITC), and print the declaration the notification requires. Example on freight of Rs 50,000: at 5% the tax is Rs 2,500 (total Rs 52,500); at 18% it is Rs 9,000 (total Rs 59,000). The higher rate only makes sense if the input tax credit you can claim is worth more than the extra you charge your party, and if your parties can take credit on the 18%. Work that out with your tax adviser before the 1 January to 31 March filing window. Our free GST on freight calculator and freight invoice maker apply the same rules: pick the treatment and see the split between CGST, SGST and IGST.

GST rates for transport services (from 22 September 2025)

Situation	GST rate	Who pays	Input tax credit
GTA freight, reverse charge	5%	Recipient	GTA takes none
GTA freight, forward charge, no ITC	5%	GTA, on its invoice	GTA takes none
GTA freight, forward charge, with ITC	18% (was 12%)	GTA, on its invoice	GTA can claim on eligible inputs
GTA service to an unregistered individual (not in the reverse-charge list)	Exempt	-	-
GTA freight of exempt goods (agricultural produce, milk, salt, food grain, organic manure, and so on)	Exempt	-	-
Plain road transport of goods without a consignment note (not a GTA or courier)	Exempt	-	-
Renting a goods carriage with fuel (heading 9966)	5% (limited ITC) or 18% (was 12%)	Supplier	Per the option used
Cargo handling, warehousing and other supporting transport services (heading 9967)	18%	Supplier	Yes, if eligible
Bilty software subscription (heading 9983)	18%	Supplier	Yes, if eligible and used for taxable business

Sources

Notification 15/2025-Central Tax (Rate), 17 Sep 2025 — GTA forward charge with ITC 18% (was 12%); renting a goods carriage with fuel, serial 10(ia)
Notification 11/2017-Central Tax (Rate), as amended by 03/2022 — GTA 5% rates; supporting services 18%; software 18% (heading 9983, serial 21(ii))
Notification 13/2017-Central Tax (Rate), serial 1 — Recipients who pay under reverse charge
Notification 12/2017-Central Tax (Rate), serials 18, 21 and 21A — Exempt transport and exempt goods; unregistered recipients
Notification 04/2022-Central Tax (Rate) — Rs 1,500 / Rs 750 exemptions removed from 18 Jul 2022
Notification 09/2025-Central Tax (Rate) and reports on the 56th GST Council meeting — The 5% / 18% / 40% structure from 22 Sep 2025 (secondary sources; check the notification for any item)

Checked against these on 23 Oct 2026. Find the notifications at: CBIC GST notifications · GST portal · E-way bill portal

General information, not tax advice. Rules change; check the notification or your tax adviser for your case.

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Frequently Asked Questions

What is the GST rate on truck freight in 2026?

For a goods transport agency that issues a bilty, it is 5% under reverse charge, 5% under forward charge without ITC, or 18% under forward charge with ITC. Freight of exempt goods such as agricultural produce, milk and food grain is exempt.

Did GST on GTA services change from 12% to 18%?

Only the forward-charge-with-ITC option changed: it was 12% and is 18% from 22 September 2025 (Notification 15/2025-Central Tax (Rate)). The 5% options did not change, and there is no 18% reverse charge.

Should a transporter choose 5% or 18%?

There is no single answer. 5% suits a transporter with few GST-bearing purchases; 18% suits one whose input tax credit on trucks, tyres, repairs and services is large and whose parties can claim credit. Compare both on your own numbers with your tax adviser before the 1 January to 31 March window.

Is GST charged on diesel for trucks?

No. Diesel is outside GST at present, so there is no GST on the fuel bill and no input tax credit on it. State VAT and central excise apply instead.

Is freight on vegetables or milk exempt from GST?

GTA freight of milk, salt, food grain including flour, pulses and rice, and agricultural produce is exempt (Notification 12/2017, serial 21). Whether a particular vegetable counts as agricultural produce depends on its state (for example, processed produce may not), so check the definition for your cargo.

Aapke sawaal (Hinglish FAQs)

Transport par GST kitna lagta hai?

Bilty (LR) dene wali GTA par 22 Sep 2025 ke baad 5% lagta hai (reverse charge ya bina ITC forward charge) ya 18% (ITC ke saath forward charge; pehle 12% tha). Chhoot wale maal ka bhada aur bina bilty ki saadi dhulai GST se mukt hai.

GTA par 5% ya 18%, kaun sa lagaye?

Dono me se koi ek sabke liye sahi nahi hota. Agar truck, tyre aur repair par aapka ITC bada hai aur aapki parties 18% par credit le sakti hain, to 18% dekhiye; warna 5% saadha rehta hai. Option har saal 1 January se 31 March ke beech Annexure V se chuna jata hai, isliye apne CA se hisaab lagwa lijiye.

Bhada (freight) par GST kab nahi lagta?

Jab maal chhoot wali list me ho (kheti ki upaj, doodh, namak, anaaj, organic khaad, registered akhbaar, relief ka saaman, defence ka saaman), ya service kisi unregistered individual ko di gayi ho jo reverse charge ki list me nahi hai, ya dhulai bina bilty (consignment note) ke ho. Yaad rahe: Rs 1,500 / Rs 750 wali purani chhoot 18 July 2022 se hat chuki hai.