CST on Freight

[Guest]

As Per Karnataka vat Specificity provided that any amount which is showing the bill chargeable for vat it means any freight we are charging in bill liable for VAT.

However as per CST Act any amount which is specificity showing in the bill separate from taxable value not chargeable for CST. it means CST will not be charged on freight.

Required a case law reference so we can issue reply to department.

[Ganeshan Kalyani]

In my view it will be difficult in fetching the required case law as the issue is very minor. However you can go for advance ruling if any order has not been passed so far.

[Srikanthan S]

Dear Mr Ajay Sharma,

It depends upon the clause in the contract of sale. Please refer the decision of the Supreme Court in the case of India Meters Ltd v State of Tamil Nadu reported in (2010) 34 VST 273(SC) = 2010 (9) TMI 878 - SUPREME COURT OF INDIA

Trust this would help you.

AI Summary

Debate on VAT vs. CST: Freight Charges Inclusion in Karnataka Under Section 14A. Consult India Meters Ltd Case for Clarity. A discussion on a forum addresses whether freight charges are subject to VAT and CST in Karnataka. The initial query highlights that VAT applies to freight included in the bill, while CST does not apply if freight is separately listed. One response suggests that finding a relevant case law might be challenging due to the minor nature of the issue, recommending seeking an advance ruling. Another response advises consulting a Supreme Court decision in the case of India Meters Ltd v State of Tamil Nadu, which might provide clarity on the matter.