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

GST on freight treated as part of transaction value; input tax credit should be claimed against goods' HSN allocation.
Freight charged on an invoice is part of the transaction value for GST and generally need not be separately shown with an SAC code; when included in transaction value freight does not retain independent existence for input tax credit and eligible recipients may claim ITC without separate apportionment. For invoices with multiple goods at different GST rates, freight is typically treated as part of the composite supply of goods and ITC should be allocated consistent with the goods' HSN classification, applying composite/mixed supply principles and the transaction value definition.