Gst On Freight


ARAVIND ALAMANDA
watch_later 2 years, 5 months ago

Dear Sir,

How the GST would be applicable on freight charges to transport the goods, If I sell the goods to interstate customer? 

Could you please explain with the invoice copy in which the GST applied on Goods cost and freight charges.

Your immediate response would be highly appreciated. 

With Regards,

  • chatComments
1 Answer

Pulkit Sharma watch_later 2 years, 5 months ago
arrow_drop_up
0
arrow_drop_down

Hi Sir,

You need to charge tax on freight mentioned in invoice whether it is a interstate or intrastate supply.

Tax rate should be tax rate charged on principal item.

It is a composite supply, in fact freight cost is part of value of your outward supply.

You can add to the cost of product itself or show separately in invoice similar to how you show products with tax rate and tax value.

I will have an article with video very soon once get enough time (its audit season) on how to prepared invoice using KYG-INVOICING.

  • chatComments
Did Not get Answer?

Join the largest Taxation Q&A platform on internet and ASK YOUR OWN question.

Ask your Question

You need to be logged in to answer.

Ask Question