flight expenses charged on bill @ 18%

[rakesh rohilla]

Dear Experts,

I am a pharmaceutical co and selling medicine and food suppliments. I charged in my invoice the value of medicine and freight. medicine is of 12% gst rate. the bifurcation of bill in which i colleced the gst tax are

Medicine value : 12000 @ 12%

freight charged : 1000 @ 18%.

My query is that i am not a service provider and whether the freight charged on bill is correct.or i have to charged freight on bill just as medicine i.e. 12% just as taken as value of supply concept. please clarify me.

AI Summary

Value of supply inclusion: freight forms part of goods' taxable value and attracts the goods' GST rate; contract may alter.
Freight is ordinarily an incidental expense included in the value of supply under Section 15(1)(c) and should be aggregated with the goods' price so the combined amount attracts the GST rate applicable to the goods. Contract terms matter: for FOR destination contracts freight forms part of taxable value; for Ex works contracts freight recovered at actuals is not included in the supplier's taxable value, though the supplier may face reverse charge GST liability on transporter services recoverable from the customer.