# Transport of Goods — General Exemptions

## Entry 18 — Transport of Goods by Road / Inland Waterways

Exempt: Services by way of transportation of goods —

(a) By road EXCEPT services of:

(i) Goods Transportation Agency (GTA), and
(ii) Courier agency

(b) By inland waterways.

Effect: Transport of goods by road by individual truck/tempo operators not issuing consignment notes is exempt. Only GTAs and couriers (which involve consignment notes / door-to-door time-sensitive delivery) are excluded from exemption.

## Entry 20 — Transport by Rail / Vessel of Specified Goods

Services by way of transportation by rail or vessel from one place in India to another of:

(a) Relief materials for victims of natural/man-made disasters, calamities, accidents, or mishap;

(b) Defence or military equipments;

(e) Agricultural produce;

(f) Milk, salt, food grain including flours, pulses and rice;

(g) Organic manure.

## Quick Comparison

Mode	What is Exempt	What is Taxable
Road	Non-GTA, non-courier transport	GTA & courier services
Inland waterways	All goods transport	—
Rail / Vessel	Only specified goods (Entry 20)	Other goods
Air	Not covered here	Generally taxable

Worked example

### Example 1

Example 1 — Individual truck operator: A small individual truck operator transports furniture from Delhi to Mumbai without issuing a consignment note. Taxability?

Solution: EXEMPT under Entry 18(a). He is NOT a GTA (no consignment note), so road transport of goods is exempt.

### Example 2

Example 2 — Rail transport of relief materials: Indian Railways transports flood relief materials from Mumbai to Chennai. Taxability?

Solution: EXEMPT under Entry 20(a). Rail transport of relief materials for disaster victims.

### Example 3

Example 3 — Rail transport of cement: Indian Railways transports cement from one state to another. Taxability?

Solution: TAXABLE. Cement is NOT in the list under Entry 20 — Railways services for non-specified goods are taxable as specified services of Government.

### Example 4

Example 4 — Inland waterway transport: A barge transports coal via inland waterway. Taxability?

Solution: EXEMPT under Entry 18(b). All goods transport by inland waterway is exempt.

⚠️ Common exam mistakes

Assuming ALL goods transport by road is exempt — services of GTA and courier agency are specifically excluded.
Assuming Rail / Vessel transport of all goods is exempt — only the items specified in Entry 20 are exempt.
Treating air transport of goods as covered by Entry 20 — Entry 20 is restricted to rail and vessel only.

Reference: Entries 18 and 20 — Notification No. 12/2017-CT(R) dated 28.06.2017

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Goods Transportation Service Exemptions — General (Entries 18 & 20)

Worked example

⚠️ Common exam mistakes