GST Rate for freight & insurance

[piyush agarwal]

I am manufacturer I am billing in single invoice

Product@12% ₹ 50000

Product@%18% ₹ 20000

Product@ 28% ₹ 10000

Freight ₹ 10000

Insurance ₹ 2000

Total 92000

Transactions is FOR.

Now my question is what rate I will charge for freight and insurance? Or I will charge 28% on entire 92000? Or I will charge 18% on freight insurance.?.it's a composite supply?

What will happen if I collect actual Freight from customer?

What will happen if i collect freight above actual?

[KIRTIKUMAR PUROHIT]

In your case; you have to charged higher rate 28% on freight and Insurance.ITC will be available to your recipient.

AI Summary

GST on freight and insurance: apply the highest applicable rate to ancillary charges; recipient entitled to input tax credit. Ancillary charges such as freight and insurance should be charged at the highest applicable rate where goods on a single invoice attract multiple GST rates; the respondent advised applying the higher rate to freight and insurance and confirmed that the recipient may claim input tax credit on those charges.