GST on Goods Transport by road and Bill To Ship To Mechanism
Query (Issue) Started By: – Pankaj P Dated:- 13-7-2017 Last Reply Date:- 9-8-2017 Goods and Services Tax – GST
Got 14 Replies
GST
Respected Members,
Even after lot of research I am unable to find answer to following questions : –
Query 1: – I'm a GST registered trader based in Delhi and have to sell goods to a buyer based in Kolkata. I will be invoicing multiple products with tax rates as 18% and 28%; along with these products I have to charge freight (Delhi to Kolkata) in the invoice.
– Now, question is what would be the rate of GST on this Freight component that I would charge from buyer and what would be the HSN Code for that?
(P.s. Would be taking services of Good Transport Agency (GTA) for goods transport.)
Query 2: – Earlier I heard that requirement of Way Bill / Road permits have been done away with. But, today I read following circular of Government of West Bengal Directorate of Commercial Taxes
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ld be glad if senior members can help me on my queries…
Regards,
Pankaj
Reply By Ganeshan Kalyani:
The Reply:
Reply to query 1 : – The freight that you will be charging on customer thru invoice would attract GST rate of the material that will be supplied.
You will have to pay GST on freight service availed from GTA.
Reply to query 2 :- The provision of e-way bill under GST is not made effective from the appointed date. In view of the same, some states have abolished way bill provision prevailing under VAT law. But some states have still continued to follow the way bill provision as existing under VAT provision.
Reply to query 3 :- I will reply on this soon.
Thanks.
Reply By Pankaj P:
The Reply:
Thanks a lot Ganeshan Sir for your Prompt reply.
However, I have few doubts.
Reply 1 : – In my invoice I am billing two products having different GST rates (18% & 28%); than freight service will have which GST rate – 18% or 28%?
How about those products which have 0% GST; wou
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eight then 5% on amount of freight is to be paid.
Reply By Ganeshan Kalyani:
The Reply:
It is advisable to raise separate invoice for transportation.
Reply By R.S. Mangal:
The Reply:
If no separate freight is shown product wise then GST on freight will be on highest rate of GST applicable on product supplied, which in your case will be 28%.
Reply By KASTURI SETHI:
The Reply:
Yes.Sir, Separate freight is to be mentioned on the invoice itself. I think separate invoice for freight alone is not requirement of GST law. Regards
Reply By THYAGARAJAN KALYANASUNDARAM:
The Reply:
Dear sir,
Reagarding query no. 3, please go through sec 10(1)(b)of IGST Act.
Reply By MUKUND THAKKAR:
The Reply:
Query 1: – I'm a GST registered trader based in Delhi and have to sell goods to a buyer based in Kolkata. I will be invoicing multiple products with tax rates as 18% and 28%; along with these products I have to charge freight (Delhi to Kolkata) in the invoice.
– Now, question is what would b
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ll under GST may be implement from the month of october.
Is it possible for Party B in Delhi to procure goods from Party A, Mumbai and directly ship goods to Party C in Kolkata? Also, what would be the implications regarding "Place of Supply" and earlier E1 / E2 forms were required what about it now?
It doesn't make sense that we first bring the goods to Delhi from Maharashtra and then sent it to Kolkata; as this would lead to freight charges. So, if possible we would prefer Bill to – Ship to transaction.
Bill to Ship to Transaction Transaction also intact in GST.. only keep in the mind of basic idea of "Recipient and Receiver" Recipient will be able to take Input tax credit and receiver only goods. you need to raised Separate invoice in favour of your customer. for keeping live of ITC chain.
NO E-1 , E-2 transaction more in GST regime.
Reply By Pankaj P:
The Reply:
Thanks to all the experts in clarifying my doubts on Query 1 & Query 2.
However, I reques
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