I have a query related to shipping Charge and GST collection of it.
lets us understand this with and Example.
Mr. A an online T-shirt Seller who sells products through his website and Mr. B who does white labelling for Mr. A and Ships products Directly to the Customers of Mr. A
Mr. B who is a vendor of Mr. A Charges Shipping to Mr. A and Collects GST on it.
For Example
Product cost- ₹ 305/-
GST @ 5 % - ₹ 15.25/-
Shipping Cost - ₹ 50.85/-
GST @ 18% - ₹ 9.15
Total Invoice Amount- ₹ 355.85 + GST - ₹ 24.4/-
Is Mr. A eligible to get ITC on Shipping Charge too?
Again my another question is that how should Mr. A make a GST invoice. Mr. A does not Charge Shipping Charge Separately to the Customers he simply charge ₹ 549/- for the product. should me make invoice like this
Method 1:
Products Amount - ₹ 522.85/-
GST @ 5 % - 26.15/-
Total Invoice Amount = ₹ 549/-
or
Method 2:
Products Amount- ₹ 465.70/-
GST @ 5 % - ₹ 23.3/-
Shipping Charge - ₹ 50.85/-
GST @ 18 % - ₹ 9.15
Total Invoice Amount- ₹ 549/-
Please help me on this.
CAclubindia
