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Applying gst tax

156 views 5 replies

rishab bokadia

2 Points Joined May 2018

I MADE AN INVOICE OF A CLIENT WITH 1000 PCS OF 1 RE VALUE WHICH COMES TO 1000 RS. I PAID COURIER CHARGES ON HIS BEHALF OF 300 RS .

SO I MADE INVOICE BILL AS 1000 RS GOODS + 300 RS COURIERS EXPENSES AND ADDED 120(12% OF GOODS AS GST) AND 54 (18% OF COURIERS AS GST IN BILL AND SENT TO THE CLIENT,

NOW I AM NOT SURE IF I HAVE RAISED THE BILL PROPERLY

Replies (5)

pritesh

CA Final student

7106 Points Joined April 2018

I think the tax rate on principal product will be applicable for couriers charges in your case

this is the concept of composite and mixed supply

Pankaj Rawat

GST Practitioner

55067 Points Joined June 2017

As per Section 8 CGST Act Its a composit supply hence rate of GST will be applicable of principal goods being supplied , so charge GST @ 12 % for goods & Courier charges

Raghavendra s shetty

Student CA IPC / IPCC

29 Points Joined December 2013

For Both You have to Charge 12% GST only

Vinod Babu

24196 Points Joined May 2018

Yes, 12% gst should be charged for goods + courier charges.

What if two items were supplied with different GST tax structures? Suppose 1st product attracts a GST @ 5% and 2nd product attracts 18% on the same Invoice then what GST %age will be applicable for Courier Charges?