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Gst billing query

shobhit (Artical Executive) (115 Points)

01 July 2017

Dear Sir,

I want to know about billing procedure in the sales tax, freight amount had been included in the bill but now in gst what will be the procedure of freight

for example

if one dealer delevered goods to purchaser via his own vehicleld and charged 500 rs as a frieght my quation is how would i treat this freight amount in the bill please tell me

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11 Replies

SUPRIYA (PRACTICE) (853 Points)
Replied 01 July 2017

you will add freight in bill and charge charge 18% gst on such freight with full itc or charge 5% GST without any ITC

2 Like

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RAMESH SHARMA (6 Points)
Replied 01 July 2017

यदि किसी उत्पादक द्वारा अपनी उत्पादित वास्तु का अधिकतम मुल्य (MRP) ₹ 100 मुद्रित किया है तब GST के तहत कम से कम किस कीमत का इंवॉइस होना चाहिए ?

RAMESH SHARMA (6 Points)
Replied 01 July 2017

MRP= Rs . 1000
Minimum invoice Rate =?

RAMESH SHARMA (6 Points)
Replied 01 July 2017

by Menufecturer

shobhit (Artical Executive) (115 Points)
Replied 01 July 2017

if i sale goods and freight is a type of services but in bill, only HSN code column availabe so should i issue another bill which contain SAC code or it can b charged in the same bill

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(Guest)

Originally posted by : RAMESH SHARMA
	यदि किसी उत्पादक द्वारा अपनी उत्पादित वास्तु का अधिकतम मुल्य (MRP) ₹ 100 मुद्रित किया है तब GST के तहत कम से कम किस कीमत का इंवॉइस होना चाहिए ?

सर invoice नीचे दिये प्रकार से बनाना होगा:

वस्तू कि MRP = 100

gst = 5% ( you can take 18% or 28% also)

MRP 100

Price after GST 5% 100*100/105 = 94.24

Net GST = 4.76

94.24 is your price which include all your cost and your profit also.

now you can sell goods to retailer at 94.24

suppose your profit is 20% in this MRP

then your cost is = 94.24*100/120 = 79.36

use attached excel sheet

Attached File : 34539 20170701225328 gst on mrp based goods.xlsx downloaded: 261 times

1 Like

SHILPA (Accounts Manager) (34 Points)
Replied 01 July 2017

ALL CLEARITY IN EXAMPLE

shobhit (Artical Executive) (115 Points)
Replied 01 July 2017

if i sale goods and freight is a type of services but in bill, only HSN code column availabe so should i issue another bill which contain SAC code or it can b charged in the same bill Read more at: /forum/gst-billing-query-400354.asp#reply

neha agrawal (0) (58 Points)
Replied 02 July 2017

If supply of goods includes the supply of freight then billing will be done at the price inclusive of freight . GST will becharged on the price inclusive of freight at the rate of GST applicable on goods. The same will be considered as composite supply.

2 Like

shobhit (Artical Executive) (115 Points)
Replied 02 July 2017

But the total turnover will be increased by the freight amount

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SUPRIYA (PRACTICE) (853 Points)
Replied 06 July 2017

Value of Supply under GST is considered as:

The value of a supply of goods or services or both shall be

the transaction value (which is the price actually paid or payable for the said supply of goods or services or both) where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply.

The value of supply shall include–––

any taxes, duties, cesses, fees and charges levied under any law for the time being in force (other than this Act, the State Goods and Services Tax Act, the UnionTerritory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act), if charged separately by the supplier;
any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both;
incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services;
interest or late fee or penalty for delayed payment of any consideration for any supply; and subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments.

For the purposes of this sub-section, the amount of subsidy shall be included in the value of supply of the supplier who receives the subsidy.

Hence any freight or other expenses charged to the recepient shall be value of supply and included in turnover.