Freight in Invoice

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183 Points Joined June 2017
I have query relating to GST on freight to be charged in Invoice:
Suppose I have sold goods worth Rs. 2000 and freight charges are Rs. 250 . The GST Rate on Goods is 18% and transportation is 5%.
How I will charge the GST i.e.
1. On total value of Rs. 2250 and GST @ 18%
or
2. GST @ 18% on Rs. 2000 and 5% on freight separately.
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On 21 July 2017 at 17:32 Report
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Proprietor
4869 Points Joined January 2010
1st option is correct
charge 18.% on 2250
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On 21 July 2017 at 17:39
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Article/GST Practitioner
98 Points Joined July 2017
you are doing business of sales and purchase so on sale of 2000 18% gst and also providing transportation services so on 250 5% gst so option 2 is right
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On 21 July 2017 at 17:41
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Article/GST Practitioner
98 Points Joined July 2017
1 option applicable only in composit supply so, hear u provided mixed supply so option 2 is right
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On 21 July 2017 at 17:45
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Article/GST Practitioner
98 Points Joined July 2017
1 option applicable only in composit supply so, hear u provided mixed supply so option 2 is right
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On 21 July 2017 at 17:46
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14 Points Joined June 2017
please give one correct answer... don't create confusion
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On 21 July 2017 at 19:25
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1518 Points Joined March 2017
1st option is correct
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On 21 July 2017 at 20:11
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150 Points Joined May 2017
freight taxable @ 18% because 5% case is of GTA
so tax @ 18 % on 2000
and tax @ 18% on 250
both amount show separately in invoice
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On 21 July 2017 at 20:11
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183 Points Joined June 2017
Selling goods and transportation of them to deliver the same at the place of buyer, is it not composite supply?
The supplier only deals in goods and he is charging freight to send goods at buyer's place (transport service is taken from outside like tempo)
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On 21 July 2017 at 20:21
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3 Points Joined July 2017

charge 18.% on 2250

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On 22 July 2017 at 10:44
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CA Final Advocate
292 Points Joined April 2010

It is a composite supply and charge 18 % on 2250 as the principal supply is of goods.

Further more, as per section 15(2)(c) of CGST Act, value of supply shall include incidental expenses etc charged by supplier. 

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On 22 July 2017 at 11:40
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none
444 Points Joined June 2011
how come sanjeev sir...18% charge on frieght?but as per GTA tax rate is 5%..than why 18%
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On 22 July 2017 at 13:25
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"Do the Right Thing...!!!"
128147 Points Joined January 2015
Originally posted by : rajni sharma
how come sanjeev sir...18% charge on frieght?but as per Goods Transport AGENCY tax rate is 5%..than why 18%

Dear Rajni Sharma...

Your question also pick the answer. their are GTAgency. But, The invoiced person is not A Agency...

You add any charges in your invoice all are taxable at the rate of Pricipal items....!

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On 22 July 2017 at 16:10
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none
444 Points Joined June 2011
thank u sir....
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On 22 July 2017 at 21:31
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none
444 Points Joined June 2011
thanks a lot...now my confusion is clear
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On 22 July 2017 at 21:31


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