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,
\nEven after lot of research I am unable to find answer to following questions : –
\nQuery 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.
\n– 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?
\n(P.s. Would be taking services of Good Transport Agency (GTA) for goods transport.)
\nQuery 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 <\/p>\n
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For full text:-Visit the Source <\/a><\/p>\n
\nRegards,
\nPankaj
\nReply By Ganeshan Kalyani:
\nThe Reply:
\nReply 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.
\nYou will have to pay GST on freight service availed from GTA.
\nReply 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.
\nReply to query 3 :- I will reply on this soon.
\nThanks.
\nReply By Pankaj P:
\nThe Reply:
\nThanks a lot Ganeshan Sir for your Prompt reply.
\nHowever, I have few doubts.
\nReply 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%?
\nHow about those products which have 0% GST; wou<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nReply By Ganeshan Kalyani:
\nThe Reply:
\nIt is advisable to raise separate invoice for transportation.
\nReply By R.S. Mangal:
\nThe Reply:
\nIf 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%.
\nReply By KASTURI SETHI:
\nThe Reply:
\nYes.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
\nReply By THYAGARAJAN KALYANASUNDARAM:
\nThe Reply:
\nDear sir,
\nReagarding query no. 3, please go through sec 10(1)(b)of IGST Act.
\nReply By MUKUND THAKKAR:
\nThe Reply:
\nQuery 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.
\n– Now, question is what would b<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nIs 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?
\nIt 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.
\nBill 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.
\nNO E-1 , E-2 transaction more in GST regime.
\nReply By Pankaj P:
\nThe Reply:
\nThanks to all the experts in clarifying my doubts on Query 1 & Query 2.
\nHowever, I reques<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n