Logistics Businesses: Are you charging the right GST?

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..... Logistics Businesses: Are you charging the right GST?
By: - Pradeep Reddy
Income Tax
Dated:- 3-3-2025
If your 𝗹𝗼𝗴𝗶𝘀𝘁𝗶𝗰𝘀 𝘀𝘁𝗮𝗿𝘁𝘂𝗽 transports goods using 𝗺𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝗺𝗼𝗱𝗲𝘀 -road, rail, or air-do you know the 𝗰𝗼𝗿𝗿𝗲𝗰𝘁 𝗚𝗦𝗧 𝗿𝗮𝘁𝗲? 🤔 A 𝘄𝗿𝗼𝗻𝗴 𝗰𝗹𝗮𝘀𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶⻿ .....

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..... 6;𝗻 𝗰𝗮𝗻 𝗶𝗺𝗽𝗮𝗰𝘁 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗮𝗻𝗱 𝗳𝘂𝗻𝗱𝗶𝗻𝗴! 💰 𝗘𝘅𝗮𝗺𝗽𝗹𝗲: 📦🚛✈️ A startup ships goods 𝗳𝗿𝗼𝗺 𝗗𝗲𝗹𝗵𝗶 𝘁𝗼 𝗕𝗮𝗻𝗴𝗮𝗹𝗼𝗿𝗲: 🚚 𝗕𝘆 𝗿𝗼𝗮𝗱 to a railway station. 🚆 𝗕𝘆 𝘁𝗿𝗮
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..... 20310;𝗻 to Bangalore. 🏠 𝗕𝘆 𝗹𝗼𝗰𝗮𝗹 𝘁𝗿𝗮𝗻𝘀𝗽𝗼𝗿𝘁 for final delivery. ⚠️𝗕𝗮𝗰𝗸-𝘁𝗼-𝗕𝗮𝗰𝗸 𝗧𝗿𝗮𝗻𝘀𝗽𝗼𝗿𝘁 𝗔𝗿𝗿𝗮𝗻𝗴𝗲𝗺𝗲𝗻𝘁𝘀 - Many startups 𝘄𝗼𝗿𝗸 𝘄𝗶𝘁𝗵 𝘁𝗿𝘂𝗰𝗸 𝗼𝘄𝗻𝗲𝗿𝘀, 𝗿𝗮𝗶𝗹𝘄x .....

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..... 302;𝘆𝘀, 𝗮𝗻𝗱 𝗰𝗼-𝗹𝗼𝗮𝗱𝗲𝗿𝘀. However, the startup𝗿𝗲𝗺𝗮𝗶𝗻𝘀 𝗿𝗲𝘀𝗽𝗼𝗻𝘀𝗶𝗯𝗹𝗲 𝗳𝗼𝗿 𝗱𝗲𝗹𝗮𝘆𝘀 𝗼𝗿 𝗱𝗮𝗺𝗮𝗴𝗲𝘀. Should GST be charged 𝘀𝗲𝗽𝗮𝗿𝗮𝘁𝗲𝗹𝘆 for road and rail? Or is it a 𝗰𝗼𝗺𝗽𝗼𝘀𝗶𝘁𝗲 𝘀𝘂𝗽𝗽& .....

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..... #120313;𝘆? 🚀 𝗛𝗲𝗿𝗲'𝘀 𝘁𝗵𝗲 𝗰𝗹𝗮𝗿𝗶𝘁𝘆: ✅ 𝗠𝘂𝗹𝘁𝗶𝗺𝗼𝗱𝗮𝗹 𝗧𝗿𝗮𝗻𝘀𝗽𝗼𝗿𝘁 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 (𝗦𝗔𝗖 996541) 𝗮𝘁𝘁𝗿𝗮𝗰𝘁 12% 𝗚𝗦𝗧 𝘂𝗻𝗱𝗲𝗿 𝗳𝗼𝗿𝘄𝗮𝗿𝗱 𝗰𝗵𝗮𝗿𝗴𝗲. ✅ This was introduc .....

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..... ed in 2018 to simplify taxation for logistics using multiple transport modes. 📌 In the 28𝘁𝗵 𝗚𝗦𝗧 𝗖𝗼𝘂𝗻𝗰𝗶𝗹 𝗠𝗲𝗲𝘁𝗶𝗻𝗴 (21.07.2018), it was discussed that: 💡 𝗙𝗶𝗻𝗱𝗶𝗻𝗴 𝗮 𝗱𝗼𝗺𝗶𝗻𝗮𝗻𝘁 𝘁𝗿𝗮𝗻𝘀𝗽𝗼𝗿𝘁 𝗺𝗼𝗱𝗲 𝗶𝘀 𝘁𝗿𝗶𝗰𝗸𝘆 💡 To𝗮𝘃𝗼𝗶𝗱 𝗰𝗼⻿ .....

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..... 5;𝗳𝘂𝘀𝗶𝗼𝗻, a separate 12% 𝗚𝗦𝗧 𝗰𝗮𝘁𝗲𝗴𝗼𝗿𝘆 was introduced. 💡 This was later notified under: 👉𝗡𝗼𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗡𝗼. 13/2018-𝗖.𝗧. (𝗥𝗮𝘁𝗲) & 14/2018-𝗜.𝗧. (𝗥𝗮𝘁𝗲) (26.07.2018) 🚨𝗞𝗲𝘆 𝗥𝗶𝘀𝗸𝘀 𝗳𝗼𝗿 𝗦𝘁𝗮𝗿𝘁𝘂𝗽𝘀: ⚠️  GST authorities may .....

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..... still argue that 𝗺𝘂𝗹𝘁𝗶𝗺𝗼𝗱𝗮𝗹 𝘁𝗿𝗮𝗻𝘀𝗽𝗼𝗿𝘁 👉 is 𝗮 𝗰𝗼𝘂𝗿𝗶𝗲𝗿 𝘀𝗲𝗿𝘃𝗶𝗰𝗲 chargeable to GST at 18%. But the 𝗖𝗕𝗜𝗖 𝗖𝗶𝗿𝗰𝘂𝗹𝗮𝗿 𝗡𝗼. 104/7/2008-𝗦.𝗧 clarified that 𝗺𝘂𝗹𝘁𝗶𝗺𝗼𝗱𝗮𝗹 𝘁𝗿𝗮𝗻𝘀𝗽𝗼𝗿𝘁 𝗶𝘀 x .....

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..... 289;𝗢𝗧 𝗰𝗼𝘂𝗿𝗶𝗲𝗿 𝘀𝗲𝗿𝘃𝗶𝗰𝗲. ✅ 👉 is chargeable to GST at 18% as any other service - which can be negated based on the aforementioned clarification on 𝗠𝘂𝗹𝘁𝗶𝗺𝗼𝗱𝗮𝗹 𝗧𝗿𝗮𝗻𝘀𝗽𝗼𝗿𝘁 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 💡 Why do these matters for your startup? Correct GST classification ✅𝗿𝗲𝗱𝘂𝗰𝗲𝘀 𝘁𝗮𝘅 𝗿𝗶𝘀𝗸
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..... 20320; ✅ensure less or no haircut to your valuation in the next funding round ✅𝗲𝗻𝘀𝘂𝗿𝗲𝘀 𝘀𝗺𝗼𝗼𝘁𝗵 𝗳𝘂𝗻𝗱𝗶𝗻𝗴 Has GST ever impacted your startup's operations or funding?
Scholarly articles for knowledge sharing by authors, experts, professionals .....

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