TaxTMI 
TaxTMI 
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
Frieght charges on composite supply exempted goods
11 Mar 2025 
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Composite supply: freight follows principal supply and may be exempt when linked to exempt goods.
Whether freight attracts GST depends on whether transportation forms part of a composite supply with the exempt goods or is a separate supply of service. If freight is separately charged, GST applies to the supply of service. If transportation is for the product and included in the agreed price or contract, it will be treated as a composite supply and taxed according to the principal supply, rendering freight exempt alongside exempt goods; parties should include freight in the contract price to ensure composite treatment. (AI Summary)
Whether freight attracts GST depends on whether transportation forms part of a composite supply with the exempt goods or is a separate supply of service. If freight is separately charged, GST applies to the supply of service. If transportation is for the product and included in the agreed price or contract, it will be treated as a composite supply and taxed according to the principal supply, rendering freight exempt alongside exempt goods; parties should include freight in the contract price to ensure composite treatment. (AI Summary)