CST on Air Freight

[ghanshyam makwana]

Goods Value 1782.30
Air Freight 200.00
CST Charges 39.64
Invoice Value 2021.94/- Is it Right or wrong, CST taken on freight Charges , please help

AI Summary

Clarification Issued: Central Sales Tax Should Not Be Charged on Air Freight, Referencing Section 2(h) of CST Act, 1956. A query was raised regarding the inclusion of Central Sales Tax (CST) on air freight charges in an invoice totaling 2021.94, with a breakdown of goods value, air freight, and CST charges. A response clarified that charging CST on air freight is incorrect. The explanation referenced Section 2(h) of the CST Act, 1956, which defines 'sale price' and excludes freight costs if separately charged. The response was provided by a management and indirect tax consultancy team, emphasizing that CST should not apply to air freight charges.