GST ON RAILWAY FREIGHT

I have a query. For example XYZ is a company supplying goods to ABC Company. ABC Company has requested XYZ to bear the Railway Freight Charges and later XYZ raise invoice twds Railway Freight Charges on ABC.

 

In this regard, Railways has raised Invoice for Railway Freight Charges on XYZ and charging GST @ 5% on Freight Charges.

In view of above, my query is following

  1. At what GST rate, XYZ will raise invoice twds Railway Freight Charges on ABC i.e. 5% or at the rate GST charged on supply of Goods.
Replies (7)
Quick Summary
This discussion clarifies the Goods and Services Tax (GST) applicable to railway freight charges. When a supplier like XYZ pays freight and then invoices the customer ABC, the key question is the GST rate to apply. The consensus is that if the invoice is solely for freight, the GST rate is 5%. However, if the freight is part of a composite supply with the main goods, the GST rate of the principal supply (often 18%) will apply.

Freight charges are applicable on railways.
@ Suman,

Is the freight is under RCM...??

Forward Charge Basis

At what GST rate, XYZ will raise invoice twds Railway Freight Charges on ABC ?

 

It's not Railway Freight Charges, Bcoz, You are not Railway...

So, It's just Freight...

You can charge GST as per Your main product GST rate...

(Generally chargeable 18 percent...)

Sir, gst on freight is at 5% . 

 

So, if the bill is only for freight charges - it will be 5% . And if it is with a product - it becomes composite supply and rate of tax of principal supply will be leviable. 

 

Pls correct me if i am wrong. 

No, No... You are exactly correct.

But,
Small updation required in Your answer.

I just a question to You based on Your answer...

Who can charge freight (except composite supply as per You)...??

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