Invoicing The Bill Under F.O.R. Basis

Tondamalla Venkateswarlu
watch_later 3 years ago


If we supply the goods on F.O.R. basis, then the freight charges should be included in Invoice or not?

If freight charges included in invoice, what is the rate of tax on freight ?.

If freight charges not included in invoice, then for freight charges  we have raise the separate invoice.

If we raise the separate invoice for freight charges then who is liable to pay the tax (If both the supplier and buyer registered under GST)

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1 Answer

Pulkit Sharma watch_later 3 years ago

If you refer to valuation provisions under GST, then it is clear that you have to include all expenses incurred to make supply possible.

Yes, you have to show freight charges in invoice and charge GST equal to rate charged on your principal supply.

If you have charged 5% on your materials supplied then you need to charge 5% on freight charges also.

On second question, if value is not known at time of supply then you can issue separate invoice and rate of tax has to be taken at 18%.

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