Gst on freight charges - valuation
This query is : Resolved
26 February 2018
Hello Experts,
Could you please share your views on below query.
As per GST Rules, GST should be charged on the Freight Charged in the Invoice to the customer. The GST should be charged at the highest GST rate of products sold as per Invoice. (Here customer is paying the freight charges as per the invoice to the seller)
However if there is stock transfer of material from one branch to another branch, Does the sender branch need to charge Freight in the invoice???? If the sender branch does not charges any Freight Charges on Stock Transfer Invoice, is this ok under GST valuation rules? Since it is stock transfer within the same company but with different GST number, will it need to charge Freight also to receiving Branch? In any case, even if freight is charged and GST is paid, the receiver branch can take the credit of GST of entire invoice. However is there any requirement to charge Freight to receiving branch?
Please share your views !! Thank you!
Could you please share your views on below query.
As per GST Rules, GST should be charged on the Freight Charged in the Invoice to the customer. The GST should be charged at the highest GST rate of products sold as per Invoice. (Here customer is paying the freight charges as per the invoice to the seller)
However if there is stock transfer of material from one branch to another branch, Does the sender branch need to charge Freight in the invoice???? If the sender branch does not charges any Freight Charges on Stock Transfer Invoice, is this ok under GST valuation rules? Since it is stock transfer within the same company but with different GST number, will it need to charge Freight also to receiving Branch? In any case, even if freight is charged and GST is paid, the receiver branch can take the credit of GST of entire invoice. However is there any requirement to charge Freight to receiving branch?
Please share your views !! Thank you!
26 February 2018
There is no requirement to charge freight to receiving branch.
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