we are collecting delivery charges from our customers for delivering materials to customers location. We are collecting gst at 18℅ for it. we are dealing with material having tax rate of 12℅, 18℅, and 28℅.
Is it requires to collect tax at higher rate for delivery charges if we are suppling items with tax rate is 28℅ Under composit supply?
If we are supplying an item with delivery charges and we are showing it seperately in our invoice with different tax rate. Is it a composit supply or mixed supply?
The said SUPPLY is a "COMPOSITE SUPPLY" ( defined u/s 2(30) of the CGST Act 2017 ).
The Tax Liability on Composite and Mixed Supply is specifically mentioned under Section 8 of the CGST Act 2017.
In case of Composite Supply, the GST Rate of PRINCIPAL SUPPLY will be taken into consideration ( for example if your Principal Supply GST Rate is 28% , then you have to collect 28% GST from your customers for other incidental charges like loading, unloading, packing, insurance, freight, delivery charges etc ).
This is my personal opinion. Experts plz correct me if I'm wrong.
Warm Regards.
CAclubindia
