GST-Chargeability

[VIGNESH]

sir Can a manufacturer / trader raise a separate invoice for freight ? if yes @ what rate, the rate charged for his goods or any other rate?

[KASTURI SETHI]

Under FCM 12 %. You can raise separate invoice but the details of goods, value etc.and invoice no. date for goods, has to be mentioned on the invoice meant for freight. I mean both should be correlatable.

[Ganeshan Kalyani]

Sir, manufacturer or trader is not a GTA to have separate tax rate. For them freight is an incidental to principal supply, so the rate of tax applicable to goods supplied will be applicable to freight as well. So, no benefit by raising separate invoice for freight.

[KASTURI SETHI]

I agree with Sh.Ganeshan Kalyani Ji. A separate invoice for freight charges linking with invoice can be issued but rate of tax meant for goods will be applicable. Freight charges will become part of transaction value of the subject goods.

[YAGAY and SUN]

Indian Accounting Standard 2 should also be considered on freight related issues.

AI Summary

Freight taxation: incidental freight is taxable at the goods' GST rate and may be invoiced separately.
Freight charged by a manufacturer or trader is incidental to the principal supply and taxable at the same rate as the goods; a separate freight invoice may be issued only if it is correlated to the goods invoice, with freight forming part of the transaction value. Manufacturers or traders are not treated as Goods Transport Agencies for separate tax treatment. Accounting treatment under Indian Accounting Standard 2 should be considered for freight-related issues.