Tax rate -Applicability

[VIGNESH]

Sir . A cement dealer is raising invoice for sale of cement bags (28%), he also does loading & unloading and charges Freight on the bills (18%). is this correct? or should he charge 28% on the total bill under composite supply.

AI Summary

Cement Sales and Related Charges: Apply 28% GST on Total if Charges Included, Separate Rates if Itemized Separately. A cement dealer inquired about the correct GST rate for invoices that include cement sales at 28% and separate charges for loading, unloading, and freight at 18%. The consensus among respondents was that if these additional charges are part of the transaction value, a 28% GST should be applied to the total. However, if these charges are itemized separately, they are subject to individual GST rates unless the recipient falls under specific categories where the recipient pays GST on freight under reverse charge mechanism. Overall, the transaction is considered a composite supply with a 28% tax rate.