GST ON FREIGHT PAID ON BEHALF OF RECIPIENT

[PANKAJ CHUGH]

HI,

Brief Facts: Invoice value ₹ 1,00,000 @ 18%

Freight of ₹ 10000/- paid by supplier on behalf of recipient. supplier issued debit note for the amount of freight on the recepient.

Query: whether there will be GST on the freight value to be shown in debit note ? If yes at what rate ?

Thanks

AI Summary

GST on Freight: Supplier's Liability, Debit Note Details, and Composite Supply Rate (18%) A discussion on the applicability of GST on freight paid by a supplier on behalf of a recipient, with a focus on whether GST should be shown in the debit note and at what rate. The consensus is that it constitutes a composite supply, meaning GST applies at the rate of the principal supply, which is 18% in this case. Participants emphasize checking the contract terms to determine who bears the GST liability. If the freight is merely reimbursed, the recipient may bear the GST. The discussion highlights the need for clarity in contract terms and consignment notes.