Freight in case of export of exempted goods

[Manik Wadhwa]

We are exporting goods ,by purchasing from Manufacturer ,to Nepal,which are exempted from GST

What will be treatment of freight paid to transporter,who is carrying the goods to Nepal?

Thanks

[KASTURI SETHI]

Export to Nepal is at par with other countries. In case of exempted goods pay GST on freight up to port and get refund.

[Manik Wadhwa]

Suppose we are

Goods purchased from ABC co. from Indore to be exported to Nepal = ₹ 500000 (Exempted Goods)

Freight Paid to Transporter to deliver the goods to Nepal = Rs 80000

We sold and exported the goods to Nepal (including freight i.e 80000) = Rs 590000

And we are

1. 100% exporting goods to Nepal

2. All our purchases are exempted from GST,so,we won't have any input credit as transporters is charging no GST on freight.

In that case

What and how the freight will be treated?

Thanks

AI Summary

Clarification Sought on GST Treatment for Freight Charges on Exporting Exempted Goods to Nepal Under GST Rules A user inquired about the GST treatment of freight charges for exporting exempted goods to Nepal. The first response clarified that exports to Nepal are treated like exports to other countries, suggesting that GST should be paid on freight up to the port, with a refund claimable. The user further explained their situation, noting that they purchase exempted goods and export them to Nepal, paying freight without GST. They sought clarification on how to handle freight charges in this context, given the lack of input credit due to the exemption.