We are supplying an item for which applicable GST rate is 12%. In the same invoice, we are also charging a certain amount as delivery charges. Should we charge 12% GST on delivery charges or it will be subject to 18% rate.
We are supplying an item for which applicable GST rate is 12%. In the same invoice, we are also charging a certain amount as delivery charges. Should we charge 12% GST on delivery charges or it will be subject to 18% rate.
The delivery charges should be subject to 12% GST if they are indicated separately on the invoice and are in relation to the supply of the item. Therefore, the correct answer is to charge 12% GST on delivery charges.
Anyone else on this.. My understanding is if it is not bundled and quoted separately in the invoice, it will attract 18%.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
