Items which are need to be included in Invoice

[Sangeetha D]

'As a registered taxpayer engaged in the supply of exempted goods (e.g., garlic), I would like to clarify the GST treatment of transportation charges. If I sell garlic worth ₹5,00,000 (which is exempt from GST) and incur transportation charges of ₹7,000, can I include the total value of ₹5,07,000 as exempt in my invoice, or am I required to charge GST on the transportation charges separately?

AI Summary

GST Exemption on Transport Costs for Garlic: Composite Supply Means No Tax if Proper HSN Code is Used. A forum discussion addresses the GST treatment of transportation charges for exempt goods like garlic. A taxpayer queries whether transportation costs should be included as exempt in the invoice. Respondents clarify that if garlic is sold with transportation, it constitutes a composite supply, exempt from GST, as the principal supply is exempt. They advise using the same HSN code for both garlic and transportation to avoid GST on transportation, emphasizing that using a separate SAC code could imply a taxable service. The discussion highlights the importance of correctly categorizing transportation as part of the exempt supply.