Freight charges in Sales Invoice

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This query is : Resolved

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This discussion addresses how to account for freight charges on sales invoices. The advice given is to account for freight separately from the goods sold. It's important to note that the GST percentage applied to freight can affect your customer's ability to claim Input Tax Credit (ITC), potentially requiring them to pay GST under Reverse Charge Mechanism (RCM).

Vijay Kumar

Vijay Kumar (Querist)
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18 December 2023 Dear Team,

Good day to All,

Could anyone please advise how to account freight charges shown in the Sales Invoice generated by my firm.

Example: Sale of FG 100
freight 05
Total 105

Can I consider Total sales value as 105 or should I take 5 (freight charges) into COGS.

Please advise and do the needful.

Thanks and regards,
V B Vijay Kumar

RAJA P M

RAJA P M (Expert)
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18 December 2023 Account the freight separately...

Thiyagarajan Kandasamy

Thiyagarajan Kandasamy (Expert)
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18 November 2025 We can add the freight charges in the Invoice but the GST % may vary, if you charge 18% in the invoice your customer is eligible to take ITC, if you charge 5% its inelgible to customer to avail ITC and they have to pay GST in RCM and avail the credit.

Fom your end raise the invoice both product or material along with freight in the same invoice with different GST %

Vijay Kumar

Vijay Kumar (Querist)
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20 November 2025 Thank you for valuable information @ Thiyagarajan

Message likes : 1 times

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