Indian Road Transport, GST & Freight Guides
Practical, audit-tested playbooks for Indian freight forwarders, transport brokers, and fleet owners. Learn how to maintain 100% tax compliance, navigate RCM, and optimize trip cash flow.
Operations & Dispatch
What is Bilty (Lorry Receipt)? Rules, 4 Copies & Sample Format
A Bilty (officially a Lorry Receipt or Consignment Note) is a legal document issued by a Goods Transport Agency (GTA) acknowledging receipt of goods for transit by road. Under Section 8 of the Carriage by Road Act 2007, it acts as the primary document of title, proof of shipment, and freight contract.
E-Way Bill Rules for Transporters: Validity, Part-B Update & CGST Rule 138
Under CGST Rule 138, an E-Way Bill is mandatory for the movement of consignments valued above ₹50,000. Transporters are responsible for updating vehicle details in Part-B before dispatch and monitoring validity expiry during transit.
Commercial Truck Documents Checklist: Mandatory Papers for Indian RTO
Under the Motor Vehicles Act 1988 and its 2019 amendments, commercial goods carriages operating across state borders must carry 6 mandatory valid documents at all times. Failure to maintain active validity leads to vehicle impoundment and fines up to ₹25,000.
GST & Compliance
GST on Goods Transport Agency (GTA): 5% RCM vs 12% Forward Charge
Under Indian GST law, a Goods Transport Agency (GTA) has two taxation options: 5% GST without Input Tax Credit (ITC) under Reverse Charge (RCM), or 12% GST under Forward Charge, with ITC allowed only on eligible inputs and input services under the regular GST route. Shippers and transporters must evaluate their cost structures before electing an option.
RCM on Transport Services: Who Pays GST & Notification 13/2017 Rules
Notification No. 13/2017-Central Tax (Rate) mandates that when a Goods Transport Agency provides freight services to specified registered persons (factories, registered companies, partnership firms, or GST registered entities), the tax liability shifts entirely to the service recipient under RCM.
GSTR-1 for Transporters: Table 4 B2B, Table 7 B2CS & Invoices Issued
Goods Transport Agencies registered under GST must file GSTR-1 monthly or quarterly. Even when billing 100% under 5% RCM, outward supplies must be reported accurately in Table 4B with the "Reverse Charge" flag to ensure recipient ITC eligibility.
Accounting & Tax
SAC Code 9965 vs 9967: Differences, Tax Rates & Invoice Rules
On freight invoices, SAC 9965 designates road freight transport by a Goods Transport Agency (qualifying for 5% RCM or 12% Forward Charge), while SAC 9967 designates auxiliary transport services like loading, warehousing, and container handling (taxed at 18%). Misclassifying them leads to tax audit notices.
Section 194C TDS for Transporters: Rates, Exemption & 10-Truck Declaration
Under Section 194C of the Indian Income Tax Act 1961, any entity paying freight to a transport contractor must deduct TDS (1% for individuals/HUF, 2% for companies) if a single payment exceeds ₹30,000 or annual aggregate exceeds ₹1,00,000. However, sub-section (6) provides complete exemption for contractors owning 10 or fewer trucks.