The 56th GST Council meeting (3rd Sept 2025) announced major reforms effective 22nd Sept, reshaping India’s transport and logistics sector. Key positives include continuation of 5% GST without ITC for small operators, reduced GST on trucks and tires (28%→18%), and lower third-party insurance (12%→5%), easing costs and compliance.

Multimodal and rail transport rates were streamlined, while e-commerce deliveries via platforms will now be taxed under Section 9(5), shifting compliance to ECOs. Organised players benefit from ITC under the 18% forward charge, though it raises working capital needs.

Concerns remain over freight cost escalation and pricing pressure. Overall, reforms are hailed as bold rationalisation, balancing relief for small fleet owners with opportunities and challenges for larger logistics players.