TaxTMI 
TaxTMI 
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.
Freight charges claimed by Supplier
24 Jan 2025 
6 Replies 
6784 Views Asked by
Composite supply treatment of freight charges requires proportionate allocation or charging highest applicable GST rate.
Freight imputed as part of bundled supplies is treated as a composite supply and follows the principal supply; GST on freight may be proportionately allocated across items by taxable value or, to avoid disputes and where input tax credit is available, charged at the highest GST rate applicable to any item. Section 15(2)(b) supports including freight in the taxable value when treated as part of the price, and Section 8 provides the composite supply framework. (AI Summary)
Freight imputed as part of bundled supplies is treated as a composite supply and follows the principal supply; GST on freight may be proportionately allocated across items by taxable value or, to avoid disputes and where input tax credit is available, charged at the highest GST rate applicable to any item. Section 15(2)(b) supports including freight in the taxable value when treated as part of the price, and Section 8 provides the composite supply framework. (AI Summary)