GST on Freight and its treatment
Query (Issue) Started By: – CA BIJENDER KUMAR BANSAL Dated:- 24-7-2017 Last Reply Date:- 2-11-2017 Goods and Services Tax – GST
Got 17 Replies
GST
Dear Sir,
\nNow as GST regime, GST is also charged if supplier is charging Freight on invoice.
\nIn some cases, supplier simply levies Freight without SAC code and charges GST.
\nOur query is whether we should open a SAC code and show credit on freight amount separately ? or it should be apportioned over the products purchased and taken credit according to that ?
\nPlease clarify ?
\nCA Gorav Goyal
\nReply By KASTURI SETHI:
\nThe Reply:
\nTransaction value is required to be inclusive of all expenses including freight, insurance etc. as per Section 15 (1) of CG<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n or e.g. you buy product of 100 INR with 18% GST with freight cost 10 INR so your total bill would be 110 + 18% = 129.28 = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \nThe Reply: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST on Freight and its treatment Query (Issue) Started By: – CA BIJENDER KUMAR BANSAL Dated:- 24-7-2017 Last Reply Date:- 2-11-2017 Goods and Services Tax – GSTGot 17 RepliesGSTDear Sir, Now as GST regime, GST is also charged if supplier is charging Freight on invoice. In some cases, supplier simply levies Freight without SAC code … Continue reading “GST on Freight and its treatment”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-6423","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/6423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6423"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/6423\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nNow you buy product of 100 INR with 28% GST with freight cost 10 INR, your bill would be 110 + 28% = 148.8
\nFreight would be considered as a composite supply in GST
\nReply By Kishan Barai:
\nThe Reply:
\nSAC Code of freight would be shown by freight forwarder to your supplier availing his services but when you buy from him, he is not doing freight business; he is supplying products to you.
\nReply By CA BIJENDER KUMAR BANSAL:
\nThe Reply:
\nThanks to all for your reply.
\nMr. Kishan Barai, I understood that he is not doing transport business and so no need to show SAC code by that supplier in Invoice.
\nThen when we taken ITC , u<\/p>\n
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\nSir, i totally agree with you. we should not talk individually about freight.
\nBasically i want to understand how should we claim that gst on Freight.
\nShould we apportion it over main products and show accordingly in different hsn code or in any of hsn code over invoice ?
\nReply By subramanian vijayakumar:
\nThe Reply:
\nIt) is composite supply. I agree with the experts view no need for hscn
\nReply By Kishan Barai:
\nThe Reply:
\nIf it's mixed supply freight would be charged as per Product with maximum GST rate.
\nReply By HimansuSekhar Sha:
\nThe Reply:
\nPlease refer q 47 of tweet FAQ.
\nReply By shashi pandey:
\nThe Reply:
\nIf in a Tax invoice, there are different gst% i.e. 5%,12% etc. on line items,then at what % GST will charge on<\/p>\n
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