EXPORT COMMERCIAL INVOICE HSN CODE
This query is : Resolved
04 September 2026
Dear Sir,
Let me clarify that,
Along with Product HSN Code it may also required for Tariff & Air Freight Charge HSN Code.
[We mentioned three different items 1) product 2) Tariff 3) Air Freight in Commercial Invoice].
Pls advice.
Let me clarify that,
Along with Product HSN Code it may also required for Tariff & Air Freight Charge HSN Code.
[We mentioned three different items 1) product 2) Tariff 3) Air Freight in Commercial Invoice].
Pls advice.
04 September 2026
Here is the professional resolution to this GST and invoicing query:
1. Concept of Composite Supply
Under the GST framework (Section 8 of the CGST Act), when freight, insurance, or other incidental charges are incurred to deliver goods to a buyer and are billed on the same invoice, it is classified as a Composite Supply.
The principal supply is the primary product being exported.
The ancillary services (air freight, tariff, packing) are naturally bundled with this principal supply.
2. HSN Code Applicability
Because it is a composite supply, the entire transaction takes the character of the principal supply. Therefore:
You do not need to mention separate Services Accounting Codes (SAC) for Air Freight (typically 9965) or Tariff on the commercial invoice.
The HSN code of the main product applies to the total invoice value, including the freight and tariff charges.
3. Invoice Presentation Best Practices
For commercial clarity and customs valuation (like arriving at the CIF/CFR value), it is perfectly fine to list the charges separately on the invoice:
Line 1: Product (Include Product HSN) - Value
Line 2: Air Freight (No separate SAC needed) - Value
Line 3: Tariff/Insurance (No separate SAC needed) - Value
Total Taxable Value: Sum of all three items, assessed under the Product's HSN code.
Summary
For an export commercial invoice, Air Freight and Tariff charges billed with the product constitute a "composite supply." Therefore, you only need to use the Product's HSN Code for the entire transaction value; separate SAC codes for the freight and tariff are not required.
1. Concept of Composite Supply
Under the GST framework (Section 8 of the CGST Act), when freight, insurance, or other incidental charges are incurred to deliver goods to a buyer and are billed on the same invoice, it is classified as a Composite Supply.
The principal supply is the primary product being exported.
The ancillary services (air freight, tariff, packing) are naturally bundled with this principal supply.
2. HSN Code Applicability
Because it is a composite supply, the entire transaction takes the character of the principal supply. Therefore:
You do not need to mention separate Services Accounting Codes (SAC) for Air Freight (typically 9965) or Tariff on the commercial invoice.
The HSN code of the main product applies to the total invoice value, including the freight and tariff charges.
3. Invoice Presentation Best Practices
For commercial clarity and customs valuation (like arriving at the CIF/CFR value), it is perfectly fine to list the charges separately on the invoice:
Line 1: Product (Include Product HSN) - Value
Line 2: Air Freight (No separate SAC needed) - Value
Line 3: Tariff/Insurance (No separate SAC needed) - Value
Total Taxable Value: Sum of all three items, assessed under the Product's HSN code.
Summary
For an export commercial invoice, Air Freight and Tariff charges billed with the product constitute a "composite supply." Therefore, you only need to use the Product's HSN Code for the entire transaction value; separate SAC codes for the freight and tariff are not required.
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