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Gst on frieght advance

Vageesh Tavarad (Accountant) (140 Points)

09 July 2017

We are instructed to Charge Tax on Lorry freight (To Be bared By the Purchaser)advance My feeling is it should not be the case as its Hand loan type activity ..we pay on behalf of the purchaser wheren The driver asks for diesel expenses

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4 Replies

Vageesh Tavarad (Accountant) (140 Points)
Replied 09 July 2017

In the attached invoice i think GST should not be charged ,,Please Clarify

Attached File : 1854764 20170709212803 invoice with gst.pdf downloaded: 155 times

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Ashwini Sawant (8 Points)
Replied 09 July 2017

GST will be charged on all freight charges

Vageesh Tavarad (Accountant) (140 Points)
Replied 10 July 2017

Thanks for your Reply Sir

But this frieght is fully borne by the buyer ..i just give advance to lorry driver towards his expense until he reaches the destination.I think the buyer will pay Tax when the transporter gives him invoice

I can raise a debit note for this amount..but sometimes it may not get accounted by the party hence we do mention the frieght in Invoice in order for proper accounting

Please clarify sir