Regarding Rate

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When adding packing charges to an invoice that includes items with different tax rates (e.g., 12%, 18%, 28%), it's generally advisable to apply the highest applicable tax rate, which is 28% in this case. This approach helps to mitigate potential issues and litigation with the tax department. Consider issuing separate invoices for packing charges to further simplify matters.

jignesh sitapara

jignesh sitapara (Querist)

02 June 2021 I make invoice with different tax rate like 12% 18% & 28%. Now, I want add packing charge in this invoice, So which rate charge on packing ?
Please help me.

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)

02 June 2021 It is advisable to Tax @ Higher Rate to avoid any further litigation from Department

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

02 June 2021 Agree with Bhavik. This would be a mixed supply and tax on packing would be @28%. Making separate invoices would help I think.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

28 October 2026 Packing charged on the goods' own invoice is an incidental expense forming part of each item's value (Sec 15(2)(c)), so apportion it to the items and tax at their respective rates — it is not a mixed supply to be taxed at 28%.

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