CST on Freight Charges

[ASHISH DESAI]

if Freight is mentioned separately in the Invoice for inter-state sales, is CST applicable on the billed amount of freight?

AI Summary

Freight Charges in Inter-State Sales: CST Not Applicable If Separately Mentioned; Applicable If Included in Total Price. A discussion on the applicability of Central Sales Tax (CST) on freight charges in inter-state sales invoices reveals consensus that CST is not applicable if freight is separately mentioned in the invoice and the property in goods passes to the buyer at dispatch. Several contributors agree that if freight is included in the total sale price, CST is applicable. The conversation also briefly touches on the meaning of CT-3 forms, used by Export Oriented Units (EOUs) for procuring goods from Domestic Tariff Areas (DTA) without excise duty, under specific conditions.