Gst on freight

@ Poornima Madhava Mam,

1. I have 2 items under GST @ 5% &18%, and freight 7% extra on total taxable value.

2. customer is telling that, you have to GST Charge on freight as per item GST rate like,

Item Amt.      GST Rate                  Freight              GST on Freight

x                   5% /18%                       7%               

100                @ 5% = 5                     7                   @ 5%=  .35

200                @ 18%= 36                 14                  @ 18%= 2.52

Dear Mam,

please clarify 

First, it is required to differentiate between mixed and composite supply: Refer the link that I earlier shared to know more about the same.

1) If sale of 1st item is not dependent on 2nd item, then such transactions are mixed supplies. In case of mixed supplies, rate of GST for freight charge would be rate applicable for the good with highest rate of GST (in your case, GST on item no.2 is 18%). Hence rate of GST on freight charges would be @ 18%.

2) If sale of 1st item is dependent on 2nd item, then such transactions are composite supplies. In that case, rate of GST on freight charges would be rate as applicable to the principal good. Identify the principal good (item no.1 or 2) in your case and charge GST on freight charges accordingly.

3) In case only 1st item is sold on a particular day, then you may charge GST @ 5% on freight charges too.