Domestic Logistics

GST on Freight and Transport in India: The Basics

4 min read
GST on Freight and Transport in India: The Basics

GST applies to most freight and transport services in India and affects the total cost of moving goods. Understanding the basics helps businesses budget and claim input credit correctly.

How GST touches transport

Freight and logistics services generally attract GST, which becomes part of the cost of moving goods. Registered businesses can often claim input tax credit on these services, reducing the effective cost, subject to the applicable rules.

Why it matters for landed cost

  • GST on freight is part of your total logistics spend.
  • Input tax credit can offset GST for registered businesses.
  • Correct documentation (invoices, e-way bills) supports credit claims.
FAQ

Frequently Asked Questions

Does GST apply to freight charges in India?
Yes, most freight and transport services attract GST, and it forms part of the cost of moving goods. Registered businesses may be able to claim input tax credit, subject to the rules.
Can I claim input credit on freight GST?
Registered businesses can often claim input tax credit on GST paid for freight services, provided the supply is eligible and supported by proper documentation.