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Location wise freight Bill

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Rajkumar Gutti

757 Points Posted on 05 August 2022

we have business in many states in India & having separate gst registration No.
we have have purchased goods from
Gujrat state supplier.The purchase invoice is in favour of various state location.
The same goods transported from Gujrat to our various location.
The transporter address is in Maharashtra, hence he raised his freight invoice in the name of our Maharashtra location unit & same is accounted in the books of Maharashtra location books of account.
Therefore we paid RCM on freight
charges as Sgst + Cgst.
My question is -
1) It is correct?
2) Is required ,each location wise freight bill
3) Is cross charges valuation question arises.

Replies (2)

Quick Summary

This discussion clarifies GST implications for freight bills when goods are transported from one state (Gujarat) to multiple locations in different states within India. The core issue revolves around a transporter based in Maharashtra raising a freight invoice in favour of the Maharashtra location, leading to RCM (Reverse Charge Mechanism) being paid on CGST and SGST. The consensus is that this approach is correct, and paying CGST/SGST under RCM is appropriate. It also touches upon the potential need for location-wise freight bills and cross-charging considerations.