gst case problem

1. if supplier is required to pay the freight as per the agreement, then the cost has to be added to the value and GST to be paid accordingly. However, if the supplier is pure agent of the recipient and the cost of freight is to be borne by the recipient, then such cost cannot be taxed as supply of goods. 

2. If the receipient pays the freight as per the agreement, it is purchase of transportation service. He will suffer the tax (under RCM OR otherwise) and take credit. Further, if the recipient has paid the freight merely to be reimbursed, then also the amount of freight has to be added to the value of supply.