Freight and forwarding HSN code

Hey Vinayak! Good question on freight and forwarding in GST.

Here’s the gist:

• Freight is generally treated as a separate supply and not a composite supply if charged separately.

• Freight or forwarding services typically fall under HSN code 9965 (for transport of goods by road) or 9967 (for transport services in general).

• The GST rate on freight depends on the mode of transport and agreement, but generally, freight services attract 5% GST without ITC (input tax credit) or 18% GST with ITC, depending on the contract.

In your case:

• Since you are charging freight separately (not bundled or included in product prices),

• You can show freight as a separate line item with an appropriate HSN code for freight (e.g., 9965).

• The GST rate for freight should be charged as per the freight service type, not based on the product’s GST rates.

Summary:

*Depending on if you or client claim ITC on freight GST

If the freight is included in the product price, then it would be part of principal supply rate. But since you are charging separately, treat it independently.