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Gst on freight charged in the invoice

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Relevant Case: Normally companies supply different kinds of goods on a same invoice chargeable with different GST rates. In that case the main issue that arises with the company is where to mention the Freight charges in the invoice-After the taxable value or before the taxable value so that it can be included in the taxable value. Also, if the freight is included in the taxable, at what rate GST would be levied on it as the charges are on a group of supplies containing goods of varied GST rates. It would certainly be impractical to include the freight portion of each good in its assessable value. How the whole invoicing and GST provisions are to be complied in such scenario? Query under consideration: 1) Whether Freight Charges are to be included in the GST Assessable Value? 2) If yes, there are several items in the invoice at what rate GST is to be charged on the freight?
Replies (1)

As per my knowledge, only incidental charges on or before the delivery of goods will form part of transaction value...

freight charges incurred from factory to warehouse will become part of TV.

freight incurred to deliver the goods to customer place as per customer request is included in transaction value...

But at the same time one more issue is that while making payment to transport agency company has to pay GST on RCM basis.

Regarding your question on what rate we have to charge is also a typical issue...since we cannot charge highest rate of GST, it is completely improper ....

Let us wait for others to give reply to this issue.


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