HSN code or Harmonized System of Nomenclature code is an internationally recognized system for the classification of goods. This system is used to classify goods and products for taxation purposes. HSN codes are used by businesses to determine the tax rates applicable to their products or services.
Transportation of goods by road is a common mode of transportation in India. It is important to understand the HSN code applicable to the transportation of goods by road. In this blog, we will discuss the HSN code for transportation of goods by road.
The HSN code applicable to the transportation of goods by road is 9965. This code falls under the category of “Supporting and auxiliary transport services; travel agencies services”. The HSN code 9965 covers services related to transportation of goods by road, rail, inland waterways, air, and pipeline.
Under the HSN code 9965, the following services related to transportation of goods by road are covered:
- Goods transport agency (GTA) services – The services provided by a GTA for transportation of goods by road are covered under this HSN code.
- Services provided by a courier agency – If a courier agency provides services for transportation of goods by road, the same will be covered under the HSN code 9965.
- Other services related to transportation of goods by road – This includes any other service related to transportation of goods by road which is not covered under the above two categories.
It is important to note that the HSN code 9965 does not cover transportation of passengers by road. For transportation of passengers by road, a different HSN code is applicable.
The HSN code for transportation of goods by road is important for businesses engaged in providing transportation services. It helps them determine the tax rates applicable to their services. The GST rate applicable to transportation of goods by road is 5% without input tax credit (ITC) or 12% with ITC.
It is also important to note that the GST rate for transportation of goods by road has undergone some changes in the recent past. Earlier, the GST rate applicable to transportation of goods by road was 5% with ITC. However, from 1st October 2019, the GST rate applicable to transportation of goods by road is 12% with ITC or 5% without ITC.
Businesses engaged in providing transportation services should also ensure that they comply with the applicable rules and regulations. The rules and regulations applicable to transportation of goods by road may vary depending on the state in which the services are provided. For example, the state governments may have different rules regarding the type of vehicles that can be used for transportation of goods, the maximum load capacity of the vehicles, etc.
In addition to compliance with rules and regulations, businesses engaged in providing transportation services should also focus on providing quality services to their clients. Timely delivery of goods, ensuring the safety of goods during transit, and providing accurate tracking information are some of the aspects that can help businesses build a good reputation in the market.
Conclusion
The HSN code for transportation of goods by road is an important aspect that businesses engaged in providing transportation services should keep in mind. It helps them ensure compliance with the applicable tax regulations and provides clarity on the tax rates applicable to their services. Businesses should also focus on providing quality services to their clients and comply with the applicable rules and regulations to build a good reputation in the market.
Other Related Blogs: Section 144B Income Tax Act
Frequently Asked Questions (FAQs)
Q: What is an HSN code?
A: HSN code stands for Harmonized System of Nomenclature code, which is an internationally recognized system for the classification of goods and products for taxation purposes.
Q: What is the HSN code for transportation of goods by road?
A: The HSN code applicable to the transportation of goods by road is 9965, which falls under the category of “Supporting and auxiliary transport services; travel agencies services”.
Q: What services are covered under the HSN code 9965?
A: The HSN code 9965 covers services related to transportation of goods by road, rail, inland waterways, air, and pipeline. Specifically for transportation of goods by road, it covers services provided by a goods transport agency (GTA), courier agency, and other services related to transportation of goods by road.
Q: What is the GST rate applicable to transportation of goods by road?
A: The GST rate applicable to transportation of goods by road is 12% with input tax credit (ITC) or 5% without ITC.
Q: What is the difference between GST rate with ITC and without ITC?
A: GST rate with ITC means that the business providing the service can claim input tax credit for the taxes paid on the goods and services used for providing the transportation service. GST rate without ITC means that the business cannot claim input tax credit for the taxes paid on the goods and services used for providing the transportation service.
Q: What are some of the rules and regulations applicable to transportation of goods by road?
A: The rules and regulations applicable to transportation of goods by road may vary depending on the state in which the services are provided. Some common regulations include the type of vehicles that can be used for transportation of goods, the maximum load capacity of the vehicles, and the safety measures to be followed during transit.
Q: What are some aspects businesses engaged in providing transportation services should focus on?
A: Businesses engaged in providing transportation services should focus on providing quality services to their clients, complying with the applicable rules and regulations, and ensuring timely delivery of goods while ensuring their safety during transit.
