GST TAX RATE ON FREIGHT

[FIDHA COMMUNICATIONS]

Dear Sir,

I have transport business in kerala(Transport goods by road) with GST registration, and i issue LR to my service receivers. I need to know about GST tax rate of freight.,& i have any permission to collect tax from service receivers as per the GST rule? and in LR, GST tax is mandatory?

I'm waiting for your valuable reply.

Thanks&Regards

SHAMNAS V ALIYAR

[Ganeshan Kalyani]

If you are registered under GST then GST on freight you can collect it from the recipient of supply of service and pay tax to the govt.

[Himansu Sekhar]

1. If you do not take any credit on the goods used for providing the services the rate is Five percent

2. If you take the credit on the goods usedfor providing the services like credit on vehicles, lubricants then rate is twelve percent

3. If you give service to a certain category of person as notified by govt, then the tax will be paid by the recipient of service as.

4. If you provide service to others then the gst will be given by you.

[Himansu Sekhar]

An article you can refer is by Sri Vinod chaurasia, SL.no. 4440

[KASTURI SETHI]

Perfect reply by both experts.

[Himansu Sekhar]

Thank you sir

AI Summary

GST on freight: supplier may collect tax from recipient; applicable rate depends on input tax credit and reverse charge. A registered transporter may collect GST from the recipient and remit it to the government. The applicable tax rate depends on whether the supplier claims input tax credit on goods used to provide the service; a lower rate applies without such credit and a higher rate applies when credit is claimed. If the recipient is a notified category, the tax liability may shift to the recipient under the reverse charge mechanism.