Applicable GST Rate on Freight Charges for Export of Goods

[CASUNIL BHANSALI]

What is the applicable GST rate on freight charges in the following scenarios related to the export of goods?

1. Freight incurred from the Place of Business to the Customs Station.
2. Freight incurred from the Place of Business for supplies transported to a location outside India.'

AI Summary

Clarification on GST rate for freight charges: Same rate for domestic and international; IGST refund available for exports. A discussion on the applicable GST rate for freight charges related to the export of goods raised questions about two scenarios: freight from the business place to the customs station and freight for supplies transported outside India. It was clarified that the GST rate on transportation charges is the same for both domestic and international supplies, with the distinction that exporters can claim an IGST refund for exported services. Another participant emphasized considering the mode of transport in the analysis.