Mr.A supplies goods to Mr.B value -10000 ,GST @ 5%
material is delivered to Mr.B premises by a truck owned by Mr.C
transportation cost-1500 gst 12%
Invoice raised by A to B of 11500 , amount collected from B 11500 and 1500 is paid to Mr.C by Mr.A
now my question is
1) whether such freight is a part of supply, if yes then what gst rate applicable?
2) if mr.C is not a GTA, then the service of transportation will be exempt, if such supply is except, then do we still freight to value of supply
3) in the problem, who will be recipient of transportation service and who will be supplier between A &B and A,&C
4)how can we avoid this addition in value because of freight?
1. yes. If it's shown in the Invoice. GST rate beard on Supply of Goods rate which is highest tax rate applicable for the freight.
2. Yes... The "Transportation of Road" is exempt when it's not including in Invoices by the supplier.
3. Mr. B is recipient of service from Mr A. (and Mr A is recipient of Service from Mr. C. if C is billing to A)
4. Better to tie up Mr B to Mr C directly without add the Freight value in invoice.
CAclubindia
