Transport of goods by a manufacturing Company

[SayadAziz Ahmad]

If we charge Transportation Charges for supply of products manufactured in our own company, should we charge GST on the value of Freight Charges. If so what rate should be used and what will be the HSN code for the Freight Charges.

AI Summary

Company Confirms Correct GST Application on Freight Charges as Composite Supply; Use Same Rate as Main Product A manufacturing company inquired about the application of GST on transportation charges for delivering its products. The company charges freight in its invoices alongside the manufactured goods and currently applies the same GST rate as the products. The discussion concluded that this practice is correct as it forms a composite supply. The GST rate for the main product, furniture in this case, applies to the freight charges. It was advised to list the HSN codes for both the manufactured goods and freight separately on invoices, confirming the company's current approach is appropriate.