GST Mistakes Transport Businesses Must Avoid
Running a transport business in Singrauli, Waidhan, or MP comes with unique GST challenges. Here are common mistakes we see.
Mistake 1: Wrong Classification of Services
Many transport businesses incorrectly classify their services. Is it "Goods Transport Agency" (GTA) or "Passenger Transport"?
The Fix:
- GTA services: 5% GST (with ITC)
- Passenger transport: 5% without ITC
Mistake 2: Not Charging RCM on Freight
If you receive freight charges from clients, you must charge GST under Reverse Charge Mechanism (RCM).
Mistake 3: E-Way Bill Errors
Common e-way bill mistakes:
- Wrong HSN code
- Incorrect vehicle number
- Not updating for vehicle change
- Expired e-way bills
Mistake 4: Missing Input Tax Credit
Transporters often miss claiming ITC on fuel, vehicle maintenance, spare parts, and insurance.
Mistake 5: Not Maintaining Proper Books
Many transport owners mix personal and business expenses.
How HCS Can Help
HCS Business Solutions specializes in transport business accounting:
- Tally GST configuration for transporters
- E-way bill automation
- Fuel card integration
- Vehicle-wise profit tracking
Don't let GST mistakes eat into your profits. Contact HCS today.