Gst Rate On Freight And Transportation Charges Shown In Tax Invoice?


Rahul Rai
watch_later 1 year, 12 months ago

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?

  • chatComments
    SIR, KINDLY CALIRIFY AS UNDER: 1.)COST OF PRODUCT Rs.7000PMT 2.) FRIGHT :- Rs.3000PMT 3.) MY SERVICE CHARGES :- Rs.100PMT TOTAL VALUE :- 10100PMT GST @ 18 % :- Rs.1818PMT G.TOTAL :- Rs.11918PMT NOW I DEPOSIT THIS GST OF Rs.1818PMT TO GST DEPT. THEN WHAT WILL BE MINE STATUS FOR AVAILING ITC UNDER GST. WHETHER I WILL BE ABLE TO TAKE FULL 18% INPUT ON ABOVE F.O.R BILLING OR NOT. AND WHAT GAT ON FREIGHT SHOULD I BOOK IN MY BOOK OF ACCOUNTS. REGARDS - RAJAT VERMA
3 Answers

Vijay Chowdhery watch_later 1 year, 12 months ago
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My View:

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.

Thanks

 

 

  • chatComments
    What abousr illustration given in the definition of Composite Supply - Deepak Joshi
    What about illustration given in the definition of Composite Supply - Deepak Joshi
    WHAT ABOUT INSURANCE CHARGES FOR TRANSPORT OF MATERIALS. SHOULD WE CHARGE GST ON THIS AMOUNT ALSO? - Sriram MV

Pulkit Sharma watch_later 1 year, 12 months ago
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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.

  • chatComments
    What will be the abblicabe tax for freight. ie if we invoice consumables with 18 % and 28% tax in a single invoice then wat will be the tax for freight - sanjay Sharma
    higher rate 28% - Shokeen Saifi

Seepal kumar watch_later 1 year, 9 months ago
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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 

Thanks

 

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