Freight in Invoice

Page no : 2

RAJA P M ("Do the Right Thing...!!!") (127177 Points)
Replied 22 July 2017

If you are satisfied my reply click on the like button....

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rajni sharma (none) (444 Points)
Replied 22 July 2017

sir wen i ask my supplier to mention cartage amount in bill he said he can show only 750 because on 750 there is no tax

rajni sharma (none) (444 Points)
Replied 22 July 2017

but as u said my supplier is not gtagency so rs750 exemption rule for GTagency

RAJA P M ("Do the Right Thing...!!!") (127177 Points)
Replied 22 July 2017

I think he can get any misunderstanding from his colleagues. But, they not calculate tax then you can pay RCM.....

rajni sharma (none) (444 Points)
Replied 22 July 2017

sir in purchase bill if he enter cartage and calculte tax on it then we need not to pay rcm if does not calculate tax than we have to pay RCM ,m i correct?

RAJA P M ("Do the Right Thing...!!!") (127177 Points)
Replied 22 July 2017

Yes you are correct.

Pawan Kumar Sharma (5 Points)
Replied 22 July 2017

I think, option 2 is right because, when we supplies goods value worth rupees 2000+250=2250+18%gst(9+9), Then the goods value will be goods value+freight, and nezt seller (shopkeeper) will charge customer 2250+profit. So will be chargeble tax 18% on 2250. I think this is right ans.

RAMESH POLINENI (ca) (352 Points)
Replied 23 July 2017

Dear all please dont give any confusion to GST. Here as for the GST LAW 2 ONE IS 100% CORRECT

ishvar (service) (29 Points)
Replied 23 July 2017

Option 2 is correct as the right charges are part of main transaction and need of business or ancillary service. Total amount will be charged at 18%. No need to apply GTA rule as it's composite scheme. Even the amount is below 750 GST will apply

virender (prop) (131 Points)
Replied 23 July 2017

too much confusion. anyone clear it for regular and composite dealer separately.

sanjeev kumar goel (Advocate) (260 Points)
Replied 24 July 2017

When we are selling only goods then its a single supply of goods and the rate of GST is applicable as per tariff rate of GST but when we are sending goods to the receiver's place through transportation and freight is being charged by us in our tax invoice then it's a mixed supply (sale and transportation sercvice) and as per GST Act under mixed supply the rate of tax would be the higher of the rate of goods supplied. So in this case GST will be charged on total value of invoice that is Rs2250/- @ 18%. It is therefore advisable not to make mixed supplies in one invoice as you have to pay higher tax on lower rate supply also. In this case you may raise two separate invoices one for sale of goods and charge 18% and another for freight and charge 5% under Reverse Charge Mechanism (RCM).

One thing is very common in GST that whenever there is a mixed supply then you have to pay GST at higher rate irrespective of nature of supply.

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Dilip Patel (Director) (71 Points)
Replied 24 July 2017

My Qtn is also the same type that we are manufacturer and supplying goods to the govt.department on tender/order basis. Our old order are continue still with the same terms and condition. In our old order the terms of supply is Ex.work price+Excise+Freight+VAT=Total Value. Now my question is also the same that where we have to charge the freight.

1.After the GST Tax or Before the GST Tax.??

2. Whether here the RCM condition is applicable or Not..??,If Yes than at which rate we have to charge GST and than Whether we will get the ITC on it.??

3.What is the GST Council Condition for this type of matter.??

RAJA P M ("Do the Right Thing...!!!") (127177 Points)
Replied 24 July 2017

Originally posted by : sanjeev kumar goel
	When we are selling only goods then its a single supply of goods and the rate of GST is applicable as per tariff rate of GST but when we are sending goods to the receiver's place through transportation and freight is being charged by us in our tax invoice then it's a mixed supply (sale and transportation sercvice) and as per GST Act under mixed supply the rate of tax would be the higher of the rate of goods supplied. So in this case GST will be charged on total value of invoice that is Rs2250/- @ 18%. It is therefore advisable not to make mixed supplies in one invoice as you have to pay higher tax on lower rate supply also. In this case you may raise two separate invoices one for sale of goods and charge 18% and another for freight and charge 5% under Reverse Charge Mechanism (RCM). One thing is very common in GST that whenever there is a mixed supply then you have to pay GST at higher rate irrespective of nature of supply.

Dear Sir.,

We can't make separate Invoices for Freight. If we register as GTA or Transporter then we can issue invoice separate for the freight. So, We can issue invoices as mixed supply even FREIGHT, PACKING, FORWARDING, LOADING & UNLOADING, CUTTING, any other charges...

We are registered above said charges as separate then we can issue Invoices for the charges...

If i'm wrong please clarify it

1 Like