TaxTMI 
TaxTMI 
if Freight is mentioned separately in the Invoice for inter-state sales, is CST applicable on the billed amount of freight?
CST on Freight Charges
21 Apr 2012 
10 Replies 
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Freight charges exclusion from taxable sale: CST not payable when freight is separately billed and property passes at dispatch.
Freight billed separately does not form part of the sale price for CST when property in the goods passes to the buyer at dispatch, so outward freight and outward insurance separately shown are not taxable; freight included in a single invoice or where the seller bears transportation risk is includible in the sale consideration and attracts CST. CT-3 is a pre authenticated form for EOUs to procure goods from DTA under Chapter X procedures, with AR 3A examination and re warehousing documentation. (AI Summary)
Freight billed separately does not form part of the sale price for CST when property in the goods passes to the buyer at dispatch, so outward freight and outward insurance separately shown are not taxable; freight included in a single invoice or where the seller bears transportation risk is includible in the sale consideration and attracts CST. CT-3 is a pre authenticated form for EOUs to procure goods from DTA under Chapter X procedures, with AR 3A examination and re warehousing documentation. (AI Summary)