GST on Forwarding charges
This query is : Resolved
05 December 2020
If an entity is selling exempt goods to another state & charges forwarding charges then whether it would be liable to obtain GST registration as per Section 24 of CGST Act?
05 December 2020
Section 24 states-A persons making any inter-State taxable supply of goods is required to be registered under GST irrespective of turnover limit.
Taxable supply includes exempt supply. Hence, he would be required to get registered under GST and pay GST on forwarding charges.
Taxable supply includes exempt supply. Hence, he would be required to get registered under GST and pay GST on forwarding charges.
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05 December 2020
Thank you so much sir for the solution. I have 1 more question that the entity charge GST on which HSN, i.e. on Forwarding charges HSN or on the goods HSN that it is supplying?
06 December 2020
It will be on HSN of forwarding charges.
There can be another view, though litigative, that the supply can be treated as composite supply of exempted item and forwarding charges and no tax payable on forwarding charges accordignly.
There can be another view, though litigative, that the supply can be treated as composite supply of exempted item and forwarding charges and no tax payable on forwarding charges accordignly.
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