Item @ 12%gst 3 x 1000 Item @ 18%gst 1 x 1000 In single invoice. We also charge Packing Charges & Freight Charges as direct expenses in same invoice. What rate of GST should be charged on this direct expenses 12 or 18%???
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Quick Summary
This discussion addresses the correct GST rate to apply to direct expenses such as packing and freight charges when they are included in a single invoice alongside other items. The consensus leans towards charging the higher GST rate applicable to the main goods, which in this case is 18%. The complexity increases if freight charges are subject to a different GST rate, like 5% from a GTA, and the implications of this are also raised.