TaxTMI 
TaxTMI 
Let me know whether freight charges shown seperately in tax invoices will be part of taxable Turn over for calculation of GST/IGST
GST on freight charges
20 Jul 2017 
7 Replies 
11764 Views Asked by
GST on freight charges: freight shown on invoices forms part of taxable value and must be apportioned for rate application.
Separately shown freight, delivery, packing or forwarding charges are included in the transaction value for GST/IGST and therefore form part of the taxable value. Freight need not have an HSN; it is treated as a component of the total supply price and may be shown separately on the invoice. Where multiple products on one invoice attract different tax rates, freight should be apportioned to the items proportionately by their values so the appropriate GST rate applies to each allocated freight portion. (AI Summary)
Separately shown freight, delivery, packing or forwarding charges are included in the transaction value for GST/IGST and therefore form part of the taxable value. Freight need not have an HSN; it is treated as a component of the total supply price and may be shown separately on the invoice. Where multiple products on one invoice attract different tax rates, freight should be apportioned to the items proportionately by their values so the appropriate GST rate applies to each allocated freight portion. (AI Summary)