Freight charge in invoice as per gst

Page no : 3

Rupesh (Acoountant) (24 Points)
Replied 27 February 2018

Please Tell me what i Can do, if i am supplier of Cement and Sand. Can it is Compulsory to Charge GST on Freight or Tranportation Charges.

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vamsi krishna (Article Assistant) (268 Points)
Replied 27 February 2018

Sir,

Let me know one thing what is Freight paid basis...... in commercial parelence...

Thanks

Rupesh (Acoountant) (24 Points)
Replied 27 February 2018

Billing of Invoice

Kartikey Jain (Intern) (2382 Points)
Replied 05 July 2018

Originally posted by : vamsi krishna
	Sir, Let me know one thing what is Freight paid basis...... in commercial parelence...

There are two modes in which payment can be made to transporters - Freight paid basis & freight to be collected basis

In freight paid basis, the supplier has already borne the freight charges and the buyer is not required to make any payment to the transporter.

In freight to be collected basis, as the name suggests, the tranporter shall collect freight charges from the recipient of the goods.

Damodaran Mohandoss (Practicing Chartered Accountant) (22 Points)
Replied 04 January 2019

In My Opinion

As per section 66D(p) (negative list under service tax) transportation of good by road is exempted service unless it is provided by the GTA or courier agency.

GTA is person who provides service in relation to transportation of goods by road and issue consignment note.

Since when I (the supplier of goods) receive service from GTA who gives me Consignment note, i have to pay GST on RCM (provided he did not opt to pay GST of 12%)

And now when I charge freight bill to my Customer (either in the same invoice with goods or seperate), the customer is not liable to pay GST on such freight bill raised by me. Since i am not a GTA (Negative List)(not giving consignment note) and i am just passing the freight charges which is charged upon me by the GTA

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Mahesh Lakh (Partner) (30 Points)
Replied 09 February 2019

I think we should look the matter by two angles.One when consignor is paying freight by including it in the invoice, full gst will be charged according to gst rate applicable.Second when consignor pay the freight ,he becomes recipient of the service hence will have to pay GST under RCM @ 5% and claim as ITC.