GST on Freight By Individual Truck Owner

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This discussion clarifies the Goods and Services Tax (GST) implications for a GST-registered cement distributor who uses their own truck. It explains that if freight charges are included in the selling price of goods, GST applies to the total. However, if freight is charged separately, the same GST rate applicable to the goods should be applied to the freight charges. The advice confirms that a single invoice detailing both the stone and freight, with GST applied to the total, is the correct approach.

Ajit Kumar Singh

Ajit Kumar Singh (Querist)
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29 June 2023 One of my client is cement distributor (GST Registered) and recently purchased a Truck and
planning to use this truck as below:
1. He will purchase the Stone from place A and transport the stone to other place B and Sell the stone.
2. Some times he use this truck for transporting Other persons material and charges only Freight.

Kindly Explain GST Implications ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 June 2023 1 GST not applicable if selling price includes freight. If freight separately charged same rate of GST applicable on stone.
2 In such a case no GST applicable.

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Ajit Kumar Singh

Ajit Kumar Singh (Querist)
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29 June 2023 thanks for your early reply sir

Ajit Kumar Singh

Ajit Kumar Singh (Querist)
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29 June 2023 One more question sir, can he make invoice like this:
Stone 25,000.00
Freight 30,000.00
Sub Total 55,000.00
GST @ 5% 2,750.00
Total 57,750.00
Whether it make any difference if he makes separate invoice for stone and freight.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 June 2023 This is the right way.
Don't make separate invoice GST official question it.

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