TaxTMI 
TaxTMI 
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.
Tax rate -Applicability
05 Jul 2021 
4 Replies 
2538 Views Asked by
Composite supply principle: tax rate follows principal supply so ancillary freight and handling attract the same higher rate.
Where loading, unloading and freight are included in the transaction value of cement, the supplier may charge the GST rate applicable to cement on the entire invoice as a composite supply; if those services are separately billed, GST must be applied to them separately. If the recipient falls within categories requiring reverse charge under Notification No. 13/2017, GST on freight is payable by the recipient under the reverse charge mechanism. Loading and unloading are commonly treated as integral ancillary services, so the rate follows the principal supply. (AI Summary)
Where loading, unloading and freight are included in the transaction value of cement, the supplier may charge the GST rate applicable to cement on the entire invoice as a composite supply; if those services are separately billed, GST must be applied to them separately. If the recipient falls within categories requiring reverse charge under Notification No. 13/2017, GST on freight is payable by the recipient under the reverse charge mechanism. Loading and unloading are commonly treated as integral ancillary services, so the rate follows the principal supply. (AI Summary)