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Freight in gst invoice

13 January 2018

Many a times we need to send goods freight paid.Please clarify-a) How to include the charges in our invoice? b) what is the rate of GST? c) should we enter HSN code applicable for transportation?

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5 Replies

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 13 January 2018

if transport is part of sale then RATE AND HSN should be the same as for GOODS SOLD

if tranport is not part , its on CUSTOMER DEMAND then you can use separate RATE Goods transport agency services for road transport

SAC 996791

RATE 5% - No ITC or 12 % with ITC

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Shankar Sharma (510 Points)
Replied 13 January 2018

It is part of the sale of our goods, as we are not in the business of transportation. But our prices do not include transportation. Can we show it as a separate item and charge GST same as for our products?

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 13 January 2018

YES HAVE TO SEPARATE SHOW THE TRANSPORTATION ON BILL

AND GST RATE AS ON GOODS

Amarjeet jasiwal (student) (147 Points)
Replied 13 January 2018

Yes, you can just add freight amount in your bill amount in tax invoice and due to involvement of one goods and services , it will be considered as composite supply as this is naturally bundled and acc. to sec 8 , your principal component of supply will be treated as supply and the rate applicable to your principal supply will be levied. i.e goods in ur case .
Thanks