Freight on exempted product

[Shiv Kumar]

Dear sir ,

Please confirm , if we supplied the exempted product to any taxable person , the freight paid for suppling of said goods will cover under GST (Service ) or remain as exempted .

Please specify with the noting in GST acts /sections

thanks

[KASTURI SETHI]

GST has to be paid on freight. No benefit of composite supply available in such situation.

[Ramesh Kothari]

It's applicable irrespective of product exempted

 

AI Summary

Taxability of freight: GST applies to freight charges even when goods are exempt, no composite supply benefit. Freight charged for delivery of exempt goods supplied to a taxable person is a taxable supply and attracts GST; there is no benefit of treating it as a composite supply to avoid tax, and the taxability applies irrespective of the exempt status of the principal good.