GST on Freight and its treatment

[CABIJENDERKUMAR BANSAL]

Dear Sir,

Now as GST regime, GST is also charged if supplier is charging Freight on invoice.

In some cases, supplier simply levies Freight without SAC code and charges GST.

Our query is whether we should open a SAC code and show credit on freight amount separately ? or it should be apportioned over the products purchased and taken credit according to that ?

Please clarify ?

CA Gorav Goyal

AI Summary

Freight Charges Under GST: Include in Transaction Value, No Separate SAC Code Needed, ITC Claimable on Full Amount. A discussion on the treatment of GST on freight charges under the GST regime highlights queries and responses from various professionals. The main question revolves around whether freight charges should be shown separately with a SAC code or included in the transaction value of goods. Responses suggest that freight is part of the transaction value and does not require a separate SAC code. Input Tax Credit (ITC) can be claimed on the entire amount without apportionment, and the HSN code of the product should be used for claiming ITC. The consensus is that freight forms a composite supply with the goods.