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Want us to carry your goods? Show GST number first: Transporters to traders

This is being done to avoid collecting taxes from sender and depositing with the govt

Rajesh Bhayani  |  Mumbai 

Truck

Transport companies are now insisting traders furnish their numbers before accepting goods for transportation anywhere. Traders who have not acquired numbers will not be entertained, some told Business Standard.

Ashok Shah, chairman of V- Trans, a large Mumbai-headquartered logistics company and past chairman of Bombay Goods Transport Association confirmed the development. He said, "Octroi being subsumed in is a big relief and will save both, time in transit and fuel. However, for transporting goods, the sender's number is required, because given the way tax provisions for have been structured, that becomes necessary".

Under the old tax regime, transport services suffered 5 per cent That rate has been retained under However in their business, did not have to be registered, collect taxes from the sender on rent or transport charges and deposit them with the government. This responsibility vested with the sender who paid transport charges. He was responsible for depositing the tax with the department.

Under GST, if transporter doesn't take the number, then he will have to register with the department and collect and deposit tax, which is an arduous task for players in this segment, many of whom are unorganised or run very small businesses. This is the reason they insist on number from traders. "If you have yet not taken number, don't send your goods to us," said another small transporter.

Even an aggregating agency running a cargo service said that it is asking the sender for his number. Narrating his experience, a senior official this agency said, "We were rotating some of the cargo to another company who was insisting on the number from receiver of goods also, if the document mentioned valuation of goods."

First Published: Tue, July 04 2017. 04:51 IST
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