Freight charges claimed by Supplier

[JOHN SHANNEL]

hi All, One of my supplier is claiming freight charges in his tax invoice. the Invoice contains multiple items with different GST rate. What is the GST applicable on the freight charges claimed by the supplier. Please advice.

AI Summary

Determining GST on Freight Charges: Composite Supply or Highest Rate Approach? Insights from the CGST Act. A supplier is claiming freight charges on a tax invoice containing items with varying GST rates. The main question is how to apply GST to these freight charges. Respondents suggest that freight charges, when part of a composite supply, should have GST calculated based on the principal supply's rate. Alternatively, the highest GST rate among the items can be applied to avoid disputes. According to the CGST Act, freight charges should be added to the taxable value if included in the supply, and GST should be proportionately allocated based on the taxable value of each item.