Composite Supply, Invoice and HSN

[Lakshya Goyal]

Dear Experts

Pls answer my query presented via below mentioned case scenario.

Case: Ramesh sells a AC(MRP ₹64000) to Sunita on MRP with ₹50,000 being taxable value and ₹14,000 being the GST amount. Also he charges ₹1000(exclusive of GST) as shipping charges. He pays ₹1000 to GTA (₹50 GST payable under RCM). This supply appears to be a composite supply of goods with delivery as per GST law. So GST collectible from Sunita on delivery charges would be @ 28%. Now he cannot bill AC ₹51,000 plus GST ₹14,280 as goods cannot be sold above MRP, so shipping needs to be shown separately.

Query:

1. What are list of supplies included in invoice? Is it AC with separate HSN of goods and Delivery charges with SAC code or both supplies with HSN of AC because tax rate of 28% is applicable only for HSN of AC?

2. If in above scenario Ramesh gets GTA to issue bilty in name of Sunita and receives ₹1000 from her which he forwards to GTA. So in this case will the shipping charges be included in Value of Supply considering that it as mere flow of money and no consideration involved?

AI Summary

Guidance on GST Invoicing: List AC and Delivery Separately; Use AC's HSN for GSTR-1 Filing. A user inquired about invoicing and tax implications under GST for a transaction involving the sale of an air conditioner (AC) with additional delivery charges. The AC is sold at a maximum retail price with a separate shipping fee. The user asked if the invoice should list the AC and delivery charges under separate HSN and SAC codes or under the AC's HSN, given the 28% GST rate. Responses suggested using the HSN for the AC and treating shipping as a pure agent transaction to avoid the 28% GST, provided documentation is maintained. Another response addressed HSN summary for GSTR-1 filing, suggesting a quantity-wise breakup.