Freight charges for which the separate invoice raised either 5% ,12 % or 18%

This query is : Resolved

Marimuthu (Querist)
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13 June 2024 Dear Experts,
1 A company is purchasing the goods from it suppliers,who is GST registered person.
2 The supplier is supplying the goods to the company, which falls under GST rate of 18%
3 The supplier is raising the separate invoices for freight charges,which is paid by the supplier.
4 The supplier does not know the freight amount at the time of raising the invoice for the goods supplieed to the company.
5 The supplier's responsibility is to deliver the goods at the Company end.
6 So the supplier raised the ivnoice for the freight charges separately.
9 Now the query is :
What will be the GST rate for the freight charges for which the separate invoice raised either 5% ,12 % or 18%
10 Pls confirm

RAJA P M

RAJA P M (Expert)
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13 June 2024 Is that supplier is transporter or register the SAC in GST...?? Is he eligible to issue invoice for transporting...??

Marimuthu

Marimuthu (Querist)
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13 June 2024 Supplier is not a transporter.
But they are GST registered person for manufacturing of goods,
As per the contract, supplier shall need to arrange to deliver the goods at the Company's Warehouse.
So they delivered the goods to the company's godown through the unregistered GTA.

This freight charges are to be absorbed by the company.
so the supplier raised a separate invoice for the freight charges,what they have paid to the GTA.
In that invoice,howmuch % of GST,he can levy?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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15 August 2025 In your case, the freight is invoiced separately and should be taxed in accordance with the applicable transport service and GST norms—not bundled with the goods’ GST (18%).
Here's how it works:
If freight is via road by a GTA:
5% GST if the GTA doesn’t claim ITC (forward charge, no ITC).
12% GST if the GTA claims ITC (forward charge, with ITC).
If under RCM, the recipient pays 5%, but cannot claim ITC
Razorpay
Swipe
Busy Infotech Pvt. Ltd.
.
For rail freight: 5% GST, supplier (railway) charges forward
Razorpay
www.bajajfinserv.in
.
For air freight: 18% GST, supplier charges forward
Razorpay
www.bajajfinserv.in
.
For sea freight (ocean): Usually 5% under RCM (imports/exports); some vessel hire scenarios may attract 18%
Razorpay
cretumadvisory.com
www.bajajfinserv.in
.
Since your supplier raises freight separately, you should clearly identify the mode of transport and apply GST accordingly on the freight invoice.
Summary Table:
Mode of Transport GST Rate Charge Type / Mechanism
Road (GTA, no ITC) 5% Supplier – forward, no ITC
Road (GTA, with ITC) 12% Supplier – forward, with ITC
Road (RCM) 5% Recipient pays, no ITC
Rail Freight 5% Supplier – forward
Air Freight 18% Supplier – forward
Sea Freight (Ocean transport) 5% RCM (typical) / 18% (vessel hire) Varies based on nature

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