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Gst on advance freight

1155 views 5 replies

Dear sir, 

 We are manufacturer and sellers too. When we issue sale bill we pay advance freight on behalf of our buyers and in turn we get reimbursement from our buyers for the freight charged. My query is are we liable to charge gst on advance freight that we pay? If yes can I get the ruling please

Replies (5)
for you it is not freight. for you it is transportation charge.
you are paying to transporter and claiming as freight charge in bill and collecting from customer
if above is true. then freight charges you are collecting from customer will be taxed and you have to charge gst @ of goods
transportation charge paying to transporter is GTA service and hence tax payable by you
any advance paid to GTA you have to pay gst under reverse charge.


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