My client who is a trader in harware materials has a commercial vehicle fleet for commodity transportation. Is it lawful in GST to collect GST on transportation of commodities from his buyers?
Rama chary Rachakonda (Master in Accounts & Lawyer email ID:firstname.lastname@example.org voice no:9989324294) 07 September 2021
as per the GST law, if the freight is exclusive and separately charged, then the GST rate on transportation service is 5%
Shuhaib Hameed 07 September 2021
Sir, f the freight is charged in the commodity bill itself, what would be the gst rate?
CMA Poornima Madhava (CMA) 07 September 2021
|Originally posted by : Shuhaib Hameed|
|Sir, f the freight is charged in the commodity bill itself, what would be the gst rate?|
In this case, the rate of GST as applicable to the principal good being sold would apply for transportation charges too. For example, if the good sold attracts GST @ 18%, then on transportation too 18% GST would apply.