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

[Asked by Guest]

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

GST on freight: freight is part of transaction value and taxed according to the rate of the underlying goods.
Freight charged to the buyer is part of transaction value and is taxable; freight should be allocated to products and taxed at each product's GST rate, though practitioners warned that if freight is not shown product-wise it may be taxed at the highest applicable rate. Transporters will charge GST on their services and a separate transport invoice was recommended. E-way bill implementation was uneven across states, with some retaining waybill/permit requirements. Bill-to-Ship-to transactions are recognised and place of supply follows the IGST provision cited, requiring correct invoicing to preserve input tax credit.