SPECIAL THANKS TO:

GST ON ROAD Faculty- Dr. Bharath Supra

TRANSPORTATION Transporters-
& LOGISTICS
1. Kewal Transport
Group No.10- Section G
(10) Aditya Sharma- 19BSPHH01C0073
(30) Bhavesh Pasricha- 19BSPHH01C0265
(50) Chinmaya Shukla- 19BSPHH01C0300 2. New Johar Roadway
(70) Arushee Khanduja- 19BSPHH01C0208
(90) Malla Shravani- 19BSPHH01C0582
(95) Sanjeevani Sachdeva- 19BSPHH01C1042 3. Dhane Logistics, Hyderabad, Telangana.
(96) Geethika. P- 19BSPHH01C0389
 INTRODUCTION
Fleet Owners • Indian Road Transport industry stands with over 8.5 million
TRANSPORTERS
(Owns the vehicle, may directly goods vehicles moving around the country, 6.5 million drivers
deal with transporter) and for ever increasing goods volume that is supposed to double
by 2025.
• India spends almost 14% of the GDP on transportation and
logistics, whereas the developed countries spend is around 6-8%.
• However, the industry remains heavily fragmented, unorganized
Booking Agent and very rough in nature.
(Takes Risk & shipment orders) • In order to gain a better understanding of the issues, let’s
understand the day-to-day operations in the industry

TYPES OF VEHICLES:
 PickUp
Brokers  407
(Intermediary between Fleet  DCM
owners and Booking Transporter)  LPT
 FTL
 Pre GST Scenario- VEHICLES
Different permit forms for different states.
{Example: Form no. 403(Gujarat), 405(Maharashtra), E-Sugam(Karnataka)}

As a result, Burden of State Border Check Posts- 4 to 48 idling hours.

 This Resulted in:

1. Fuel wastage.
2. Time Wastage.
3. Slower Deliveries.
4. Inefficient Supply Chain for consignees.
5. Corruption at Check posts.
Permit Forms for Different states (Pre-GST)
 Pre GST Scenario- TRANSPORTERS
Registered under Service Tax Structure (Reverse Charge Mechanism)

 Complex Tax Structure: Excise Duty, Service Tax, Sales Tax/VAT/CST, Customs
Duty and Entry Tax/Entertainment Tax.

Different tax structure for Warehouses situated across different states.

Had to bear Higher costs due to the scenario of the Vehicles.

 Implementation of GST
• Migration from Service Tax number to GST Identification Number.
• Need to register if aggregate turnover exceeds 20Lakhs threshold.
• Two options:
1. Reverse Charge Mechanism (RCM)
The payment of GST is not done by the transporter but is done by
party(Consignor or Consignee) who pays the transporter.
2. Forward Charge Mechanism (FCM)
Paid by Transporter
ITC available if 12%
ITC not available if 5%
 Post GST Scenario- VEHICLES

Single E-Way Bill Across Less Hassle of

All States. Documentation.

End to State Border Time & Fuel Saved.

Check Posts.
 E-Way Bill
DOCUMENTS REQUIRED VALIDITY OF AN E-WAY BILL

Invoice/ Bill of Supply/ Delivery Other Than Over Dimensional:

Challan Less Than 100 kms- 1 Day

Transporter ID (GSTIN) For every additional 100kms or part

Transporter LR details and thereof- Additional 1 Day
Vehicle details

Over Dimensional:
• Goods whose value exceeds Less Than 20 kms- 1 Day
Rs.50,000 cannot be
transported without an E-Way For every additional 20kms or part
Bill. thereof- Additional 1 Day
• Not required if vehicle is
going to a weigh bridge within
the range of 20kms from
supplier.
• Errors in E-Way Bill are
subjected to penalties upto
 Post GST Scenario- TRANSPORTERS
• Lower costs could be offered due to rise in profits.
• Turnaround time for trucks reduced due to end of border check posts.
• Hence each truck can complete more number of trips.
• Only a transportation details of single permit form needs to be checked (E-Way Bill).
Details like: Transporter ID, LR no. and date, vehicle number, mode of transport,
place of consignor.
• Documents during transit:
1. Invoice
2. Delivery Challan.
3. Quality Report (if required)
4. LR (Lorry Receipt)
5. E-Way Bill
INVOICE & DELIVERY CHALLAN
LR & TRANSPORTATION BILL
E-Way Bill Portal of a Transporter
 Fleet & Parts
Pre GST
1. Prices of Spare Parts were expensive which led
to increase in overall bill at the service centre.
2. Tax on Labour was 15%
3. An excise duty (12.5%) & VAT(14.5%) were
imposed on MRPs of the spare products.
4. Example: MRP is assumed as Rs. 2000.If a
part was sold by a company for Rs. 1000 to a
service centre that added a margin of Rs. 155,
the customer would be paying Rs. 1917, as he
is charged with excise duty (12.5%), LBT,
Octroi, Cess & VAT (14.5%)
5. The cost of a truck involved a hefty amount of
taxes.
Post GST
1. Prices of Spare Parts have fallen which led to
decrease in overall bill at the service centre
2. Tax on labour has gone up to 18%
3. Majority of automobile spare parts fall under
28% as well as under 18%
4. Example: MRP is assumed as Rs. 2000.If a
part was sold by a company for Rs. 1000. This
will cost customer around 1836 – a saving of
Rs. 81, as customer is charged with 28% of
GST.
5. Also ITC can be availed on purchase of new
truck.
 Conclusion
• Other steps like compulsion of FasTags will increase the transportation
speed and will act as a supporting aid to the benefits gained by the
implementation of GST.
• Proper filing, turnover and accounts has to be maintained by the
transporters so that they can avail the benefits of ITC.
• Government has taken measures like blocking the GST portal of the
registered users if the do not pay the GST for 2 consecutive months.
• Late payment also attracts a fee of Rs.50 per day to them.

• THANK YOU