AAR Rules Flipkart Road Logistics as GTA; GST Exemption Applies for Unregistered Customers

A graphic with the text 'EXEMPTION APPLIES FOR UNREGISTERED CUSTOMERS' and a symbol of the GST bill crossed out, set against a light blue background.

The Authority for Advance Ruling (AAR) held that Flipkart India’s proposed road-based logistics model qualifies as Goods Transport Agency (GTA) services, as all required conditions—taxable supplier, transportation of goods solely by road, and issuance of a consignment note—are satisfied.

Further, since the end customer is the actual recipient of the transportation service and bears the freight cost, services provided to unregistered customers are covered under Sl. No. 21A of Notification No. 12/2017–CT (Rate).

Accordingly, the AAR ruled that GTA services supplied by Flipkart Road Logistics to unregistered end-customers are exempt from GST, including all incidental services provided during transportation.