Freight charge in tax invoice

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Rakesh Sharma (Querist)

10 July 2017 respected experts, I am trying to Search and already several requests in forum to answer the above query. Is the above query is unanswered. please help me I am selling item with GST 28% and charges freight 2000 in invoice. I have entered payment voucher against payment to GTA on RCM basis. Is this practice is perfect or I have to charge GST on freight 28% as well. Also in some invoices I have charged wooden packing charge with GST @12% while item rate is 28%. Is the above practice is perfect? I request to all experts, please help me and guide me. Rakesh Sharma

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 July 2017 You have to pay 28% GST on freight and packing charges. See valuation rules under GST.
Any taxes, fees, charges levied under any law other than GST law, expenses incurred by the recipient on behalf of the supplier, incidental expenses like commission & packing incurred by the supplier, interest or late fees or penalty for delayed payment and direct subsidies (except government subsidies) are required to be added to the price (if not already added) to arrive at the taxable value.

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Rakesh Sharma

Rakesh Sharma (Querist)

10 July 2017 thanks a lot sir

Rakesh Sharma

Rakesh Sharma (Querist)

10 July 2017 but sir when we pay this freight to GTA, is RCM applicable

Rakesh Sharma

Rakesh Sharma (Querist)

10 July 2017 sir, please reply

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)