GST on freight charges

[NAUSHERAWAN SM]

Let me know whether freight charges shown seperately in tax invoices will be part of taxable Turn over for calculation of GST/IGST

[Himansu Sekhar]

Yes, it will be added to the value

[Guest]

yes, it is composite supply.

[THYAGARAJAN KALYANASUNDARAM]

Dear expert,

Then what HSN should mention in the invoice against the freight and please clarify the following situation.

Situation 1.

If I'm supplying goods single products and charging freight/packing and forwarding / delivery charges separately.

Situation 2.

If I'm supplying two different products with same rate of tax but two different hsn and charging consolidated freight / packing and forwarding /delivery charges separately.

Situation 3.

If I'm supplying two different products with different rate of tax with hsn and charging consolidated freight / packing and forwarding / delivery charges separately.

Thanks in advance.

[MUKUND THAKKAR]

freight charges are not goods or services so need not require to mention Hsn code . HSN code for services and Goods only. freight charges and packing charges are Naturally in cost of entire supply of goods or services. supplier just showing is Separately as per terms and condition of purchase order.

[Himansu Sekhar]

Recently the FAQ released has clarified the issue, the freight will be apart of the value. Regarding the apportionment of the value between the products so as to charge the rates which are different, my view is, the freight value will be devided on the basis of the value of the products carried. It is through the residual method. Other experts may clarify the issue.

[Ganeshan Kalyani]

Freight is liable to GST at the rate applicable to material if the component of freight is shown on the face of the invoice. As regard rate applicability i am of the view that freight should be propotionate to the material and accordingly gst is payable.

[vk agarwal]

agree with mr kalyani

AI Summary

Debate on Including Freight Charges in Taxable Turnover for GST/IGST; Discusses HSN Code and Applicable Rates A discussion on a forum addressed whether freight charges shown separately on tax invoices are part of the taxable turnover for GST/IGST calculation. Several participants agreed that freight charges are included in the taxable value, as they are considered a composite supply. Questions arose about the appropriate Harmonized System of Nomenclature (HSN) codes for freight charges, with some suggesting they are not required since freight is not a separate good or service. It was noted that the GST rate for freight should be proportionate to the material's rate if shown separately on the invoice.