How to start a logistics or transport company in India: registrations and licences
Logistics company setup in India: GTA GST at 5% or 18%, reverse charge rules, goods carriage permits, e-way bills and presumptive tax for truck owners.
Short answer
A logistics or transport company in India needs a business entity, GST registration and vehicle registrations and goods carriage permits from the regional transport office, including national permits for inter-state trucking. Goods transport agencies can charge 5% GST without credit, often paid by the recipient under reverse charge, or opt for 18% with credit. Small truck owners can use presumptive taxation.
- GTA GST options
- 5% without ITC (RCM or forward) or 18% with ITC
- Vehicle permits
- Regional Transport Office; national permit for inter-state
- E-way bill
- Generally for consignments above ₹50,000
- Presumptive tax
- Up to 10 goods carriages under section 58
- Customs clearance
- Customs broker licence if offering clearance
Choosing a structure
Fleet owners with a few trucks often run as proprietors or partnerships. Logistics companies offering warehousing, freight forwarding and technology-led delivery usually form private limited companies to raise capital and contract with large shippers.
The structure affects tax: the presumptive scheme for goods carriages is available only to resident individuals, HUFs and partnership firms other than LLPs that own no more than ten goods carriages.
Registrations and licences
The list depends on your model: owning trucks, acting as a goods transport agency, forwarding freight, warehousing or offering customs clearance. Many operators combine several of these, adding licences as they go.
| Registration | Issuing authority | When required | Typical validity |
|---|---|---|---|
| Vehicle registration and fitness | Regional Transport Office | For each commercial vehicle | Fitness renewed periodically |
| Goods carriage permit or national permit | State transport authority / RTO | For operating goods vehicles; national permit for inter-state | As per permit, renewable |
| GST registration | GST department | Above ₹20 lakh services turnover, or if opting forward charge | Until cancelled |
| Shop and establishment registration | State labour department | Offices and warehouses | Varies by state |
| Customs broker licence | CBIC | If clearing goods through customs for clients | As per licence |
| Multimodal transport operator registration | Directorate General of Shipping | If issuing multimodal transport documents | As per registration |
| Fire NOC and trade licence | State fire service and municipal body | Warehouses, depending on size and goods | Varies |
How GST works for goods transport
A goods transport agency, which issues a consignment note, can pay GST at 5% without input tax credit, or opt for 18% with full credit. Since the September 2025 changes, the credit option rose from 12% to 18%. When a GTA uses the 5% route and supplies specified recipients, such as factories, companies, partnership firms or registered persons, the recipient pays the tax under reverse charge unless the GTA has opted to pay under forward charge for the year.
Transport of goods by a truck owner who does not issue consignment notes is treated differently from GTA service, and certain transport, such as of agricultural produce or milk, is exempt. Local delivery services through e-commerce platforms have separate rules, so check your model.
Presumptive tax for truck owners
Section 58 of the Income-tax Act 2025 lets eligible owners of up to ten goods carriages declare deemed income instead of keeping detailed books. For heavy goods vehicles above 12,000 kg gross vehicle weight, income is deemed at ₹1,000 per tonne of weight per month or part month; for other goods carriages, ₹7,500 per vehicle per month. You can declare higher actual income.
Companies and LLPs cannot use this scheme and must compute actual profits. Customers deduct TDS on freight payments, though transporters with ten or fewer vehicles can furnish a declaration with PAN to avoid deduction under the conditions the law sets.
Ongoing compliance
Keep vehicle fitness, insurance, permits and pollution certificates valid; lapses can lead to seizure and fines. Drivers need valid commercial licences. Generate or verify e-way bills for consignments, and carry them in the vehicle with the invoice.
If you operate warehouses, follow fire safety and labour rules, and keep stock records for clients' goods. GST returns, TDS returns and annual filings for the entity complete the calendar.
Pitfalls for logistics operators
The forward or reverse charge choice must be communicated to customers clearly at the start of the year, because wrong invoicing leads to double payment or demands.
- Charging 5% GST and also claiming input tax credit.
- Missing the annual declaration when choosing to pay GST under forward charge.
- Running vehicles with expired permits or fitness certificates.
- Moving goods without valid e-way bills.
Step by step
- 1Choose the entity
Proprietorship, partnership or company based on fleet and plans.
- 2Register vehicles and permits
Obtain registration, fitness, insurance and permits from the RTO.
- 3Register for GST
Decide between 5% (RCM or forward) and 18% with credit.
- 4Set up documentation
Consignment notes, invoices and e-way bill processes.
- 5Local registrations
Shop and establishment, fire and trade licences for offices and warehouses.
- 6Specialised licences
Customs broker or multimodal transport registration if needed.
- 7Choose income-tax method
Presumptive scheme for small fleets, or regular books.
Related services
Sources
- Income Tax Department: Section 58, Income-tax Act 2025 (presumptive taxation)
- EY Tax Alert: GST Council rate rationalisation effective 22 September 2025
- Taxaj: GST on travel agents and tour operators (2026)
Written by the Refogo Editorial Team from the official sources above and checked on 2026-10-31. Laws, rates and due dates change, and authorities often extend deadlines, so confirm your own case with a qualified professional. This is general information, not legal or tax advice. Read our editorial policy or report an error to support@refogo.com.
Common questions
What is the GST rate for goods transport agencies?
A GTA can pay 5% without input tax credit, often under reverse charge by the recipient, or opt for 18% with full input tax credit from 22 September 2025.
Can a transporter avoid TDS on freight?
Transporters owning ten or fewer goods carriages can furnish a declaration with PAN to the payer, who may then not deduct TDS, subject to the conditions in law.
Is a licence needed to start a logistics company?
There is no single logistics licence. You need vehicle permits, GST and local registrations, plus specialised licences for customs clearance or multimodal transport.