TaxTMI 
TaxTMI 
Goods are supplied to SEZ under LUT without payment of GST. Subsequently, Debit Note is issued to the customer towards recovery of freight charges in relation to this supply. Is GST required to be paid against such recovery?
GST on freight charges
13 Oct 2023 
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Zero-rated supplies: freight recovery via debit note retains export treatment under LUT, no additional tax.
Supplies to SEZ units are treated as zero-rated supplies. A debit note issued to enhance the taxable value of an earlier invoice does not constitute a new supply but adjusts the original supply; therefore the debit note inherits the tax treatment of the original invoice and, where that supply was zero-rated under LUT, the freight recovery reflected in the debit note is treated similarly. (AI Summary)
Supplies to SEZ units are treated as zero-rated supplies. A debit note issued to enhance the taxable value of an earlier invoice does not constitute a new supply but adjusts the original supply; therefore the debit note inherits the tax treatment of the original invoice and, where that supply was zero-rated under LUT, the freight recovery reflected in the debit note is treated similarly. (AI Summary)