GST (Goods and Services Tax)
Goods and Services Tax — India's unified indirect tax regime applicable to the supply of goods and services, including logistics and freight transport.
What is GST?
GST — Goods and Services Tax — is India’s unified indirect tax regime that replaced a fragmented mix of central and state taxes (VAT, service tax, excise duty, etc.) when it was introduced in July 2017. It applies to virtually every supply of goods and services in India, including the transport and logistics sector.
How GST applies to logistics
For road freight in India, GST is levied on:
- Goods transport services — typically 5% (with restrictions on input credit) or 12% (with full input credit) depending on the transporter’s chosen scheme
- Container freight, warehousing, packaging, freight forwarding — generally 18%
- Inter-state vs. intra-state — same total rate, but split between IGST vs. CGST + SGST
The rate that applies depends on the type of cargo, distance, GTA (Goods Transport Agency) status, and whether the transporter has registered for forward-charge or reverse-charge mechanism.
Why GST compliance matters for transporters
A GST-non-compliant logistics operation will lose customers fast — enterprise shippers can’t claim input credit on freight bills that don’t carry proper GST documentation, and statutory penalties for incorrect filings are substantial.
The three documents every Indian transporter must produce correctly:
- GST Invoice — issued to the consignor / customer with all GST fields
- E-Invoice (if turnover above ₹5 Cr) — validated through the IRP portal
- E-Way Bill — generated for any shipment worth more than ₹50,000
How HashTMS handles GST
HashTMS generates GST-compliant invoices in one click, integrates directly with the e-invoice IRP for B2B invoices, and links every invoice to the underlying trip, LR, and e-way bill. Tally / SAP / Zoho Books integrations push the data straight into your accounting system — no double entry, no reconciliation pain.