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Shipping charges with gst

SUMIT BADYAL (709 Points)

08 January 2020

if a company sell exempt agriculture product can he charge shipping charges with gst? Ans plzz

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5 Replies

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 09 January 2020

It's Exempted only when it's supplied by GTA (refer Notification 9/2017 IGST rate

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 09 January 2020

In addition to above .... Transportation services by road is Exempted in term of notiNotifica 12/2017 CT(r), & more important as per the composit supply prescribed in section 8 of CGST Act , the principal supply EXEMPTED so the shipping charges therein bill cannot be charged 5% GST.

SUMIT BADYAL (709 Points)
Replied 09 January 2020

Rawat sir, actually we sell seeds through courier and we want to recover courier charges from customer's so it is possible to charge shipping charges with gst in sale invoice..which is seeds is exempt in gst

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 09 January 2020

No....... that's what I replied .

yes if you are raising the separate bill for freight can charge GST .(but it's not advisable )

VIKAS ESNAPURAM (CA-JOB) (226 Points)
Replied 27 July 2021

I guess your concern is that you are unable to claim the Input of GST charged by the courier agency because you are supplying exempted goods, so you want to recover the GST from your customer.

I think you can show shipping charges(what you incurred + plus GST charged by courier agency) in your invoice as shipping charge and show it as part of invoice value and as per the concept of composite supply whole amount will be exempted from GST.