GST on reimbursement of air freight charges

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This query is : Resolved

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This discussion clarifies whether Goods and Services Tax (GST) is applicable when a customer reimburses air freight charges for imported materials. The consensus is that GST is generally chargeable on these freight charges. The applicable GST rate for the air freight will be the same as that for the imported materials themselves.

Sonnal Khandaray

Sonnal Khandaray (Querist)
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26 June 2021 Hi All
One of my clients has imported material from Air way. Customer who has ordered the good, has agreed for reimbursement of these air freight charges. Now we have to raise seperate invoices one for materials and other for air freight charges. whether GST is chargeable on air freight charges. what will the rate for for the freight charges?

Thanks in advance.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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26 June 2021 Whether gst chargeable or not on the customer depends on the nature of agreement you have with the customer. But prima facie it seems you will have to charge gst on freight.