GST on Freight

[R.P. GUpta]

We are dealing only exempted Education books.
We send books on freight paid basis to the customer and we charge the freight from the customer in the invoice raised by us. Will GST be applicable because freight is taxable service in reverse mechanism.

[Rajagopalan Ranganathan]

Sir,

Since you are despatching education books on 'freight paid' basis you have to pay GST on reverse charge basis @ 5% without input tax credit.

[R.P. GUpta]

Thanks for the reply. GST on freight is already included in the freight bill received from the transporter. DO I need to deposit 5% GST again which is already paid to the transporter and I am not claiming it. . If yes then on BOOKS I need not have any GST number but to deposit freight I need to take GST number.

[KASTURI SETHI]

GST cannot be charged twice.

AI Summary

Reverse charge on freight applies; recipient must account for GST on freight but it cannot be double charged. Freight for exempt education books, billed to the customer, is treated as a taxable service payable under reverse charge by the recipient without input tax credit. Where GST on freight has already been paid to the transporter and no credit is claimed, duplicate charging or remittance should be avoided because GST cannot be charged twice.