GST applicability on Shipping charges

Shipping charges must be allocated proportionately between the 5% and 18% goods. The apportioned amounts inherit the respective GST rates of the principal goods (5% and 18%). The most seamless approach is to apportion freight directly into the taxable value of each product line item on the tax invoice and HSN summary.

I have attached the snip of sample invoice. Can we present like that? We bifurcated shipping on basis of items value in HSN summary and below main product summary table, added shipping (inclusive of GST) as a separate line item. 

Shipping charges on a multi-rate invoice need proportional allocation, not a flat single rate.

ALLOCATION METHOD: Split the freight value between the 5% and 18% goods in proportion to the value of goods in each bracket. The apportioned freight amount then inherits the GST rate of the goods it relates to. A single freight line at 18% for a mixed invoice is incorrect.

HSN: Use SAC 9965 for freight/courier services. But the GST rate is not independently 18%; it follows the principal supply rate under the composite supply rule.

INVOICE OPTIONS:
- Option 1 (cleaner): Absorb allocated freight into each product line value and show one combined taxable value per GST rate. No separate freight line.
- Option 2: Show freight separately, apply a blended rate, and include an allocation note explaining the split.

The CBIC circular on composite supply confirms freight incidental to sale of goods is part of that supply. Rate follows the principal goods.

For more GST invoice scenarios including composite supply treatment, this [GST compliance checklist for new businesses](https://taxgarden.in/blog/gst-compliance-checklist-new-businesses) covers rate applicability and invoice presentation requirements.