GST ON FREIGHT CHARGES

[SURYAKANT MITHBAVKAR]

We have cleared Goods through GATI to our customers. By oversight we have not charges freight charges (GATI) in our sales invoice. now we have to raise separate debit note to customer.

Kindly let us know we have to consider Gross value ( Taxable + GST) of GATI invoice and charge GST on that amount in our Debit Note since we have to avail GST input credit on same ( GATI ) invoice. OR

we have to consider Net Taxable value of GATI invoice and charge GST on that amount in our debit note.

[Rajagopalan Ranganathan]

Sir,

Have you paid gst on the amount indicated in the GATI invoice (without including freight charges)? If you have paid gst on the amount indicated in the GATI invoice, then it is sufficient to pay gst on the amount indicated in the debit note. You need not pay gst again.

[Shilpi Jain]

What amount you want to charge to customer fornthe freight charges should be as per your commercial understanding...

If the understanding is that u charge what u have incurred, then the debit note will be for basic amount on which gst will be charged

[Ganeshan Kalyani]

I agree with the view of Ms. Shilpi Mam.

AI Summary

GST on freight: charge GST only on the taxable amount in the debit note and avoid double GST collection.
If GST has already been paid on the value shown in the GATI invoice, account for GST only on the amount invoiced in the debit note; the debit note should state the basic freight amount and levy GST on that taxable value according to the parties' commercial agreement to preserve input tax credit alignment.