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invoice

gaurav gupta (B.Com) (75 Points)

24 June 2017

A firm raised a taxable invoice containing two different rate of gst items. He charged seprately for insurance packing n forwarding charges on same invoice. How to charge gst on the Same over the invoice?

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5 Replies

Ashpak Ali (Finance Accounts Manager) (87 Points)
Replied 24 June 2017

You can Charge more than one service or goods in the single bill. Thre is no issue.

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CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 24 June 2017

just show rates on gst and amount of gst saperately in the invoice if rates are different. Otherwise you can show in a single entry.

gaurav gupta (B.Com) (75 Points)
Replied 24 June 2017

what about incidental charges like insurance packing freight etc

gaurav gupta (B.Com) (75 Points)
Replied 24 June 2017

at what rate of gst will be charge on these expenses where two rate of items involved in a single bill

CA Akhilesh Kumar Kandpal (Proprietor A K Kandpal & Associates) (1442 Points)
Replied 26 June 2017

normally if you show them separately then you should charge separate gat at the respective rate for each item.... if you charge a single amount for whole item including freight and insurance than the gst will be charged at the rate which is applicable to principle commodity...... But a noteworthy thing in present gst law is that if you read the definition of composite item, it never state that to being qualified for a composite item one price should be charged for the product including the incidental items. hence i believe that even if you charge separate prices for items, they can qualify for composite supply as far as they are naturally bundeled in the ordinary course of business. hence you can either charge it at a single rate (i.e. rate applicable to principle commodity) or you may charge it at different rate applicable to respective item, whichever is more beneficial to you.... however it is more safer to charge at different rates if prices are shown separately as gst is new law and we did not know whether it is intentional or mistake that condition of single price is not brought in the definition of composite supply