GST applicability on Shipping charges

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This query is : Resolved

Bhawna Dubey (Querist)

17 August 2026 We’re preparing a sample tax invoice to implement on one platform and need practical guidance on shipping charges charged from customers.

If an invoice has products taxable at different rates i.e. 5% and 18% GST, and suppose Rs 5,000 shipping/delivery charges (GST-inclusive) are charged, with shipping being incidental to the sale:

1. Should Rs 5,000 be shown separately or included in the taxable value of goods?
2. If included, how should it be allocated between 5% and 18% supplies?
3. If not included and we are showing it as a separate line item on invoice, then what GST rate & HSN we can charge for shipping?
4. What is the practically preferred way to show shipping charges in the invoice/HSN tax summary?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

19 August 2026 Shipping charges on multi-rate orders are treated as composite supplies and should be allocated proportionately based on the taxable value of each goods category (5% and 18%), applying the respective item's GST rate to its proportionate shipping share.

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