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

GST on freight may be payable up to the port and refundable even when exported goods are exempt.
Export to Nepal is treated like other countries: freight up to the port is subject to GST and, if GST is paid on that freight, a refund is available; where purchases are exempt and the transporter does not charge GST, the exporter will have no input tax credit.