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Packing and forwarding charge - gst implication

yogesh_patel (Propreitor) (71 Points)

14 July 2020

I have to make a invoice in which there are goods with different rates

example

Item A (18%) -- 1000

Item B(12%) --- 1000

Item C(5%) --- 500

Packing & Forwarding Charges--- (GST Implication)

how to charge gst in such case

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5 Replies

T.V.S.RAVILA (Article Assistant) (46 Points)
Replied 14 July 2020

Composite supply means a supply is comprising two or more goods/services, which are naturally bundled and supplied in with each other in the ordinary course of business, one of which is a principal supply.

It means that the items are generally sold as a combination.

The items cannot be supplied separately.

Mixed supply under GST means a combination of two or more goods or services made together for a single price.

Each of these items can be supplied separately and is not dependent on any other.

If the entire supply falls under composite supply, then gst shall be charged at the rate that applies to principal supply...
If it is a mixed supply, then the gst rate shall be highest rate of all supplies I.e., 18%
But if it is a mixed supply better to raise separate invoices and pay respective gst rate which is applicable for items...
for example invoice 1: 1000+ p/f charges + 18% gst
invoice 2: 1000+ p/f charges + 12% gst
invoice 3: 500+p/f charges+ 5% gst

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 14 July 2020

Charge GST as per items rate...
Charge GST 18% for P & F charge...

Vijayprakash P (1313 Points)
Replied 14 July 2020

The GST for packing and forwarding charges should be charged on the total value of supply. If transportation cost is included gst has to be charged at the same rate of tax charged on supply.