Frieght charges on composite supply exempted goods

[Mohit Chhabra]

I sell wood charcoal (exempted) hsn 4402, if I add frieght charges in invoice , what will be tax on frieght, will it also be nill as frieght tax rate in case of composite supply is based on tax on goods supplied

 

 

AI Summary

Understanding GST on Freight Charges: Composite Supply Exemption for Wood Charcoal Under Section 8(a) of CGST Act 2017 A participant inquired about the tax implications on freight charges when selling exempted goods like wood charcoal under GST. One respondent suggested that separately charged freight attracts GST as a supply of service. Another mentioned that if freight is part of the product's sale, it constitutes a composite supply, thus exempt from GST. A third response advised drafting contracts to include freight charges within the agreed price, ensuring it is treated as a composite supply under Section 8(a) of the CGST Act, 2017, and is a legally valid contract per the Indian Contract Act, 1872.