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GST for Freight & Transportation charges

13 August 2017

We supply goods to clients in local transportation and the frieght charges are being charged. Will the GST to be included for freight charge in the invoice.

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7 Replies

CA Rashmi Gandhi (Chartered Accountant) (86477 Points)
Replied 13 August 2017

No.........

But if transporter issue builty then you have to pay tax @ 5% under RCM.

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Gurjeet Singh (16 Points)
Replied 13 August 2017

If the vehicle is owned by the supplier itself who charge for transportation then what is the GST impact on transportation charges.

Srinivasan Chokkanathan (199 Points)
Replied 13 August 2017

If you charge transportation in the tax invoice, you have to charge GST at the rate applicable to the goods supplied as per the invoice. The highest rate of tax in the invoice to be adopted.

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RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 13 August 2017

@ Gurjeet Singh..
Yes. You can charge GST for the freight charges in your invoice.... Rate of tax is your items rate.
You supply one or more items. Then you can charge which highest rate of Tax that only applicable for the freight amount....

2 Like

Sanaa...Tulip... (student) (186 Points)
Replied 02 September 2017

Is there any limit for frieght charges to become taxable?

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CA Rashmi Gandhi (Chartered Accountant) (86477 Points)
Replied 02 September 2017

Upto 750.- all freight charges are in exempted category.

Md baig (Bookkeeping & Taxation Consultant) (59 Points)
Replied 16 September 2017

Hello Rashmi Madam I am working in a Basmati Rice Export company, we purchase Basmati Rice from Punjab & Amritsar, 1. Seller will give the rice in 50 kgs white bags (GST exempted for white bags) 2.Seller will arrange Transporter for transportation of Basmati Rice, Transportation bill is on basmati rice receiver name, but he is not charging gst only bill amount he is taking 3.we are the receiver of the basmati rice, we have to pay the gst under rcm, if yes the what is the % of GST 4.some where i read if you are paying 5 GST on GTA services there is no ITC, if you are paying 12% GST on GST services then you will get ITC is it right