TaxTMI 
TaxTMI 
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.
Transport of goods by a manufacturing Company
30 Jun 2021 
5 Replies 
1600 Views Asked by
Composite supply principle: freight charged by a manufacturer attracts the GST rate of the principal goods and is incidental.
When a manufacturer transports its manufactured goods and charges freight alongside the goods, the freight is part of a composite supply and the GST rate of the principal goods applies to the freight. Invoices should list HSNs for both the manufactured goods and the transport service separately, while applying the tax rate of the principal supply to the freight component. (AI Summary)
When a manufacturer transports its manufactured goods and charges freight alongside the goods, the freight is part of a composite supply and the GST rate of the principal goods applies to the freight. Invoices should list HSNs for both the manufactured goods and the transport service separately, while applying the tax rate of the principal supply to the freight component. (AI Summary)