Freight charge in tax invoice
This query is : Open
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
(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.
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
(Querist)
10 July 2017
thanks a lot sir
Rakesh Sharma
(Querist)
10 July 2017
but sir when we pay this freight to GTA, is RCM applicable
Rakesh Sharma
(Querist)
10 July 2017
sir, please reply
CA R SEETHARAMAN
(Expert)
11 July 2017
RCM applicable....................
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Rakesh Sharma
(Querist)
11 July 2017
thanks a lot sir.
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