CST- On Freight charges

[lakshmi narayana rao]

Dear sir, 

we raise the Invoice to the Customer,from Bangalore to out of Karnataka,  and charging the Freight after the CST. Now DCCT is asking us to pay the CST on Fright. 

Kindly suggest as per rule. 

Thanking you, 

Yours Faithfully, 

Lakshmi Narayana Rao

AI Summary

CST Not Applicable on Separately Itemized Freight Charges Under Section 2(h) of Central Sales Tax Act, 1956. A query was raised regarding the applicability of Central Sales Tax (CST) on freight charges for invoices issued from Bangalore to locations outside Karnataka. The Department of Commercial Taxes (DCCT) demanded CST on freight. In response, it was clarified that according to Section 2(h) of the Central Sales Tax Act, 1956, the sale price includes any charges made by the dealer except for separately charged freight costs. Therefore, if freight is itemized separately on the invoice, CST should not be applied to these charges.