Railway Transport of Goods: GST Documentation & Compliance Guide

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Railways remain one of the most reliable and cost-effective modes of transporting goods across India. With the implementation of GST, businesses must ensure proper compliance while sending consignments through the railway network. This involves maintaining the right documentation, generating e-way bills, and understanding the applicable GST rate on freight services. Proper adherence not only avoids penalties but also ensures seamless movement of goods and eligibility for input tax credit where available. Here is a detailed guide for sending goods through railway transport with GST compliance.

📌 GST Compliance for Sending Goods by Rail

1.Classification of Service

  • Transportation of goods by rail (other than metro, monorail) is covered under SAC 99651 – Transport services via railways.
  • It is different from GTA (Goods Transport Agency by road).

2. GST Rate

  • Transport of goods by rail is taxable at 5% (without ITC on goods & services used in supplying service) OR
  • 12% (with full ITC available).
  • Indian Railways usually charges 5% GST on freight.

3.Documentation Required

When you send goods by rail:

  • Tax Invoice under GST must be raised by the supplier.
  • Mention:
    • Mode of transport: Railway Parcel / Railway Goods Train
    • LR/RR Number (Railway Receipt number – equivalent to consignment note)
    • Place of dispatch and delivery.
  • Carry the E-way Bill, if applicable.

4.E-way Bill Requirement

  • Mandatory if consignment value exceeds ₹50,000.
  • Part A: Filled by consignor/consignee.
  • Part B (Transporter ID & Doc. no.):
    • For rail transport, mention the RR (Railway Receipt) number.
    • The Railway (as transporter) has a GSTIN & transporter ID that must be used.
    • Consignment must be booked in the name of consignee or consignor.

5. Who Pays the GST on Freight?

  • If booked through Indian Railways → Railways will collect freight + GST (mostly 5%).
  • If booked through an agent or private container train operator → they will charge GST as per applicable rate.
  • The recipient of goods (if registered) can take ITC if GST @12% is charged (not in 5% option).

6. Steps to Send Goods via Rail (GST Compliant)

  1. Prepare Tax Invoice with all GST details.
  2. Generate E-way Bill (if >₹50,000).
  3. Book goods with Indian Railways Parcel Office / Container Operator.
    • Submit invoice + e-way bill copy.
  4. Railway issues RR (Railway Receipt) – acts as transport document.
  5. Mention RR number in E-way Bill (Part B).
  6. Pay freight + GST (railways will show GST separately in receipt).
  7. Consignee can use RR + invoice + e-way bill for claiming input / delivery.

✅ Summary:

  • Use Invoice + E-way Bill + RR (Railway Receipt) for compliance.
  • Railways themselves charge GST @5% normally.
  • Enter RR number in Part B of E-way bill.

  • Ensure proper documentation for ITC.

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