Goods Tranport Opeartor ( GTO) Vs Goods Transport Agency (GTA) - cargo
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Goods Tranport Opeartor ( GTO) Vs Goods Transport Agency (GTA)

Goods Tranport Opeartor ( GTO) Vs Goods Transport Agency (GTA)

As per the National Highways Authority of India, 65% of freight and 80% of passenger traffic is carried by the roads. 

In industry and commerce transportation of goods by road is commonly carried out by the following 2 principle modes GTA


What is a GTO?

Goods Transport Operator ( GTO ) – As per the latest guidelines and acts of GST a transporter who doesn’t issue a consignment note to the consignor but offers a challan, or kachca bill post-loading of the freight preferably for a Full Truck/ Vehicle Load is termed as called Goods Transport Operator. . The services offered by the GTO are exempt from payment of GST as per the existing laws of GST. The operator could be the owner of a small fleet of commercial vehicles and provides the services of hiring of trucks by him

The service of transport of goods by road offered by entities that issue a consignment note was brought into the service tax net initially under the name “Goods Transport Operators (GTO) Service” with effect from 16-11-1997 but later the levy was shifted from truck operators (service provider) to the person who pays freight (service receiver). The name of the service was eventually changed to “Transport of Goods by Road Service”. And the concept of “Goods Transport Agency (GTA)” was introduced.


ACES initiative has made the process of administration simple and transparent. However, there are blunders as well.

Goods Transport Operators (GTO) is no more a service existing. However, while registering through the ACES website

an option is provided to select Goods Transport Operators Service even if the service does not exist at all.

What is a GTA?

As per Notification No. 11/2017-Central Tax (Rate) dated 28th June 2017, “goods transport agency” or GTA  means any person or agency that provides service in relation to transport of goods by road and issues consignment notes, by whatever name called. Others, also hire out vehicles for goods transportation, only those issuing a consignment note are considered as a GTA. Thus, a consignment note is an essential condition to be considered as a GTA.

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