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

[YAGAY and SUN]

Dear Sir,

Please check the Sub Section (h) of the Section 2 of the Central Sales Tax Act, 1956 in this regard.  Section 2(h) enumerates the definition of the Sales Price which says:-  "Sale Price" means that amount payable to a dealer as consideration for the sale of any goods, less any sum allowed as cash discount according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything doen y the dealer in respect of the goods at the time of or before the delivery thereof other than the cost of freight or delivey or the cost of installation in cases where such cost is separately charged:

it means if you shows the cost of freight separately on the face of the invoice then there is no need to charge the CST on Freight cost.

Regards,

Pradeep Khatri

AI Summary

Sales Price definition: separately invoiced freight is not subject to central sales tax under CST Act guidance
The Sales Price definition treats sale price as consideration for goods but excludes costs of freight or delivery when such costs are separately charged on the invoice, so freight shown distinctly on the invoice is not part of the taxable sale price for central sales tax purposes.