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Freight Tax Deposit Related

03 June 2021

A company sells its goods online site.
Example: - The price of an item including taxable value is 1299 and freight is Rs 50
Total value of products- Rs 1349

That I have to pay tax on 50 rs freight ?

Thanks .

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3 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 03 June 2021

If ₹1349 is the total price, then ₹50 freight would include GST too.

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 03 June 2021

Yes you're correct

CA Subhankar Basu (Chartered accountant ) (318 Points)
Replied 03 June 2021

Here think from different aspects ,like if company selling the goods through online ,& online agency charging freight charges from seller ,then freight Will part of the cost of the product, and automatically will add with taxable value , buyer have to pay tax on such taxable value ( including freight)
in other side seller paid freight charges to online authority, e-commerce,it's input service from seller perspective,so seller can take ITC on freight charges ...