Freight charges in invoice is gst applicable

if we shown freight charges after baiscvaluve and gst. is gst is applicable on freight charges.


basic value 100

igst 18
freight 5
Replies (8)
Quick Summary
This discussion clarifies whether GST is applicable to freight charges shown on an invoice. The consensus is that if freight charges are included in the invoice, GST is indeed applicable to them. The value of goods for GST calculation should include freight, meaning GST is levied on the total amount. While some perceive this as double taxation, it's explained that the GST on freight can be claimed as input tax credit. It's generally advised to charge GST on freight at the same rate as the goods, or consider excluding freight charges from the goods' cost to simplify.

Ot is your choice, u can mention packing & freight charges excluding of GST or including of GST
You shown packing and forwarding Charges with GST 18% after basic value
Yes, GST will be applicable on the frieght or packing charges which you mentions in the bill, you can add the GST amount of the frieght or packaging with the above GST amount.
Depends on when delivery is being terminated and terms of contract

whatever you charge in the invoice, gst is leviable on it.

As per Valuation rules, Value of the Goods will include all the values except the GST amount. So Freight amount has to be included in the total taxable value of the goods and GST has to be paid freight also. In your case GST to be paid 18% on Rs 105. 

 

 

In such cases it has become dobule taxation. My basic price is inclusive of freight on which gst attracts. To dispatch goods I engage transport on which I use to pay gst under Rcm

is this correct
Where does the double taxation arises ? If you had added the frieght charge in your bill and you are engaging a transporter for carrying the goods, here the frieght charged on the bill is say 1000 rupees and its GST amount ie, Rs.180 will be the output tax and the GST amount charged by the transporter will be your input tax credit irrespective of whether it is paid under RCM or not.

In normal cases the rate on transportation is 5% or 12% and if we are adding it in bill with the cost of products then we should charge the GST rate as same as the rate of goods renders. if we sell a 18% rated goods then the frieght will also be charged 18%. So, it is better to avoid adding the frieght with goods cost.

However its my views, you should consult before taking any such decisions.

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