GST on Shipping Freight

What is the shipping charges in case of interstate sale of goods? Goods supplied are taxable @ 5%

Replies (1)

Shipping charges are applicable when goods are shipped (transported or delivered) to a buyer or an end-user. The seller adds this charge to the bill (to be borne/paid by the buyer). If the product in question is taxable, then there will be a tax on the shipping charges, too, depending on the rate of tax.

 

The tax should be charged on the total value of supply. If the transportation cost is included, then GST has to be charged at the same rate of tax charged on supply of goods.In  that case tax rate shall be 5% in reference to your question.If you are not charging freight charges in the invoice and is directly paid by the buyer of goods, then GTA provision has to comply.Now it depends in your case,whether shipping charges are included in the value of supply or not.

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