GST on coal supply including freight

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A composition dealer who buys and sells coal, including freight charges for transport via their own vehicle, is asking about GST liability. While road freight services are generally exempt, the advice given is that this situation constitutes a composite supply. Therefore, GST must be paid on the entire sales proceeds, including the freight charges.

Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)
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14 August 2020 Sir, I own a goods vehicle. I purchase coal from market and sell the same to my client. Sale proceeds received by me is including freight (my own vehicle). I am registered as composition dealer in GST. It is learnt that goods freight is exempted from GST. In my case, whether I will have to pay GST on entire sales proceeds of coal (transported by my own vehicle) or approx. tpt.charges to be excuded from GST turnover ?

Udaya Chandran

Udaya Chandran (Expert)
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14 August 2020 Though No GST for the transport services by road, in your case, it is composite supply. Yes, you need to pay GST on the whole amount including the freight charges.