We are manufacturers of pharmaceutical machinery. While selling the machinery we have to charge insurance,Freight and Packing charges separately after the basic value of the machinery and calculate GST on the total amount. As of date we are mentioning the above charges without any SAC. Now we have start to issuing E-invoice from April;-22 onwards..We understand that under E-invoicing system we have to mention the above charges with SAC.
Kindly let us know if there is any provision for the same. If yes let us know the SAC for the Freight, Insurance and Packing &forwarding charges.
Pharmaceutical Machinery Manufacturer Advised to Use Main Supply HSN Code for E-Invoicing Insurance, Freight, and Packing Charges A manufacturer of pharmaceutical machinery inquired about the Service Accounting Code (SAC) for insurance, freight, and packing charges when issuing e-invoices under the Goods and Services Tax (GST) system. They sought guidance on whether these charges require separate SACs. Respondents advised that these charges are considered a composite supply, and the Harmonized System of Nomenclature (HSN) code for the main supply should apply. It was suggested that for e-invoicing, either use the HSN code with the highest value or list each line item separately, but the HSN code of the machinery itself should be used for all related charges. (AI Summary)
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