Freight bill

188 views 2 replies

Anshuman Basu

account -GST

1560 Points Joined June 2018

We have Manufacturing Company (Pvt Ltd). We purchase our Raw materials from another manufacturing company. They send materials to our factory by their own trucks.

They issue two type of Invoice one is Materials Invoice and another is Freight Invoice.

Now Question is:

Q1/ Can a manufacturing company issued separate Freight Invoice? Is manufacturing company fall under GTA service Provider?

Q2/ What will be the rate of GST on freight Charge?

Q3/ Can we take ITC from Freight Bill?

Q4/ is RCM applicable for me?

Please Guide me

Replies (2)

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

1. a) Yes... If he is registered then service in GST portal...
b) I think he not GTA...

2. Exempted.

3. If he is charging GST for the freight then You can claim ITC...

4. No... If as per 1(b) reply...

additions : ask the company if they are acting as GTA...

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

1. Yes can issue Separate invoice for freight. but if freight invoice issued is Exempted or Rate charge therein is less than principal supply (raw material) , the officer can issue notice for evading tax . In my view it's ancillary services shall included in the bill in which principal supply is made.(Refer Section 8 CGST Act)

2. It's Exempted in term of Notification
12/2017 CT(r)

3. Yes if GST being charged.

4. No RCM