GST when goods are Supplied with in India on FOR (Materiel + Freight) Basis
We supply goods to Various Industries in India. In Some Case Even the Freight is paid by us (Consigner) to GTA i.e. Transport Company/Truck Owners and all Consignees are Pvt Ltd / Ltd. Consignee Release the Material & Freight directly to our bank Account.
Now who will pay GST on Freight & how should we invoice for our Material.
what is the Consignee is Located in J&K
Rohit Bhura
Who Pays GST on Freight for FOR Basis Goods in India? Consignor or Consignee? ITC Not Available on Freight. A discussion on the Goods and Services Tax (GST) implications for goods supplied within India on a freight-on-road (FOR) basis, addressing who is responsible for GST on freight. If the goods are dispatched on a 'paid' basis, the consignor pays GST on the Goods Transport Agency (GTA) service; if on a 'to pay' basis, the consignee pays. The situation in Jammu & Kashmir is uncertain due to pending state legislation. Input Tax Credit (ITC) is not available for GST paid on freight, and this applies even if a truck owner is directly hired without a consignment note. (AI Summary)
Goods and Services Tax - GST