Whether GST should be charged on freight or transportation cost charged in a tax invoice?
If GST is to be charged then at what rate?
Is RCM applicable on transport part of invoice?
I have covered this aspect in detailed article valuation under GST.
Basically the whole essence of valuation is that tax should be charged on total value of supply.
If transportation cost is part and parcel of supply then GST has to be charged at the same rate of tax charged on supply.
For example, If you are supplying goods to a party and charged taxed at 18%, then you have to charge tax on transport cost also at 18%.
Further it should be noticed that if you are not charging freight cost in invoice and is directly paid by buyer or recipient of supply, then he has to comply with GTA provisions including RCM.
I did not get my answer
My question is that if what can I done fright payment entry with gst to reserve back for rebate of gst
So how can show the freight payment entry in gst 3b please check and reply me
Reply me in details with cgst/sgst/igst
As far as charging freight in the invoice is concerned. We need to find out whether or not the same is taxable ? Lets examine.
Charging freight in the invoice is amounts to 'Services by way of transportation of goods" which is exempt and covered under the list of exempted services at serial number 9, except in the case of (a) services of GTA or (b) services of Courier Agency.
If you are neither covered under the definition of GTA or courier agency, charging freight for "transportation of goods by road" in the invoice is an exempted service provided by you. In fact you are not providing any service, you are just passing through the freight charges of GTA for transportation of goods to your customer.
Once services provided are exempted, you are supposed to charge tax under GST. Neither it will be termed as "Composite supply of goods and Services as the service you are intended to provide is exempt from tax.
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