Forwarding Charges / Packaging Charges / Delivery Charges


Sunny Dugar
watch_later 1 year, 8 months ago

WE ARE IN TO SALES OF PARTS, THERE ARE LOT OF INSTANCES WHERE WE CHARGE FORWARDING CHARGES / PACKAGING CHARGES / DELIVERY CHARGES TO OUR CUSTOMERS....

1. HOW DO WE SHOW THIS IN OUR INVOICE?

2. SHOULD THEY BE CHARGED GST ?

3. SHOULD TAX CALCULATION ON FORWARDING BE SHOWN SEPARATELY OR CLUBBED WITH CGST & SGST (( CHARGED ON OTHER PRODUCTS )) 

  • chatComments
    Sir, Please use lower case letters. Very difficult to read long paragraphs :) - Pulkit Sharma
    If Forwarding Charges/Delivery Charges are charges to customer, a third-party has also supplied them to us. So, in that case do we need to make a purchase entry for them? And in most cases, the supplier is unregistered, so can we show them as purchases from unregistered suppliers. Most cases, such purchases may be below Rs.5000.00 a day, hence can we account for them without RCM? - Moiz S Vadnagarwala
1 Answer

Pulkit Sharma watch_later 1 year, 8 months ago
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Please read Valuation provisions under CGST Act, 2017.

All expenses you mentioned whether shown seperately in invoice or cost clubbed with cost of product does not make any difference.

Section 15 is clear on that every cost incurred to make supply should be included in value of supply.

1. In invoice show separate line items with same HSN code as of product, since it part of composite supply and rate to be charged is same. You can also go with particular HSN code.

2. Yes you need to charge GST on them.

3. If cost clubbed with cost of product then no need to show separate otherwise tax break up should be given similar to break up given for product.

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