diff --git a/src/config/schema-transformer/to_bgp.py b/src/config/schema-transformer/to_bgp.py
index 05ca117e3d6..c770bf4ab94 100644
--- a/src/config/schema-transformer/to_bgp.py
+++ b/src/config/schema-transformer/to_bgp.py
@@ -514,6 +514,9 @@ def locate_routing_instance(self, rinst_name, service_chain=None,
                         for rt in self.rt_list:
                             rtgt_obj = RouteTarget(rt)
                             rinst_obj.add_route_target(rtgt_obj, inst_tgt_data)
+                        if not is_default and self.allow_transit:
+                            rtgt_obj = RouteTarget(self._route_target)
+                            rinst_obj.add_route_target(rtgt_obj, inst_tgt_data)
                     if (not compare_refs(rinst_obj.get_route_target_refs(),
                                          old_rt_refs)):
                         need_update = True
@@ -529,6 +532,9 @@ def locate_routing_instance(self, rinst_name, service_chain=None,
                     for rt in self.rt_list:
                         rtgt_obj = RouteTarget(rt)
                         rinst_obj.add_route_target(rtgt_obj, inst_tgt_data)
+                    if not is_default and self.allow_transit:
+                        rtgt_obj = RouteTarget(self._route_target)
+                        rinst_obj.add_route_target(rtgt_obj, inst_tgt_data)
                 _vnc_lib.routing_instance_create(rinst_obj)
         except (BadRequest, HttpError) as e:
             _sandesh._logger.error(