Gst on expenses

Dear team,

Understand from your query:

1) You are supplier of goods and collecting freight charges which is paid by you.

In this case, this is an composite supply. One, supply of goods, Two, supply of services. ( Transport charges)

As per the composite supply definition, the pricipal supply is supply of goods. Then, on transport charges also the same rate applied. To make it very clear, you assume your product falls under 5% GST. Service tax rate is 18% ( assume), still the GST for this composite supply is 5% only.

2) As per reverse charge provisions, the receipient of service ( You) while making payment to transporter have to comply with reverse charge provisions.

Hope it is clear

thank u for u reply i need some clarity on reverse charge provison on transport.explan with example,who will come under reverse charge either supplier or recevier or transporter..supplier paying amount on behalf of receiver and adding freight amount in invoice to reciver.