GST on Goods Transport by road and Bill To Ship To Mechanism

[Pankaj P]

Respected Members,

Even after lot of research I am unable to find answer to following questions : -

Query 1: - I'm a GST registered trader based in Delhi and have to sell goods to a buyer based in Kolkata. I will be invoicing multiple products with tax rates as 18% and 28%; along with these products I have to charge freight (Delhi to Kolkata) in the invoice.

- Now, question is what would be the rate of GST on this Freight component that I would charge from buyer and what would be the HSN Code for that?

(P.s. Would be taking services of Good Transport Agency (GTA) for goods transport.)

Query 2: - Earlier I heard that requirement of Way Bill / Road permits have been done away with. But, today I read following circular of Government of West Bengal Directorate of Commercial Taxes - 'Trade circular no. 06/2017 Dated: 30.06.2017 Subject: E-waybill under WBGST Ordinance, 2017. It mentions that E Way Bills to be generated before importing goods in West Bengal. This means other states like UP would also have Way Bill / Road Permits? Or only select states have re introduced Way Bills in GST Regime.

Query 3: - Bill to – Ship to transactions in GST regime

Party A: - Manufacturer “Firm Based in Maharashtra”

Party B: - Trader “Firm registered in Delhi”

Party C: - Buyer “Firm Based in West Bengal”

Is it possible for Party B in Delhi to procure goods from Party A, Mumbai and directly ship goods to Party C in Kolkata? Also, what would be the implications regarding 'Place of Supply' and earlier E1 / E2 forms were required what about it now?

It doesn't make sense that we first bring the goods to Delhi from Maharashtra and then sent it to Kolkata; as this would lead to freight charges. So, if possible we would prefer Bill to – Ship to transaction.

Would be glad if senior members can help me on my queries...

Regards,

Pankaj

AI Summary

Trader Seeks Clarity on GST for Freight Charges, E-Way Bills, and 'Bill To Ship To' Transactions A trader from Delhi seeks clarity on GST-related queries regarding goods transport and the 'Bill To Ship To' mechanism. The first query involves determining the GST rate on freight charges when billing products with different tax rates. Responses suggest that GST on freight should align with the highest tax rate of the products being transported. The second query concerns the requirement of e-way bills, with some states maintaining the need for them under GST. The third query involves the logistics and tax implications of direct shipments from a manufacturer in Maharashtra to a buyer in West Bengal, with experts suggesting the place of supply would be Delhi. The discussion also addresses maintaining confidentiality of purchase and sales prices within GST compliance.