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GST on Freight and its treatment
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....ST on Freight and its treatment<br> Query (Issue) Started By: - CA BIJENDER KUMAR BANSAL Dated:- 24-7-2017 Last Reply Date:- 2-11-2017 Goods and Services Tax - GST<br>Got 17 Replies<br>GST<br>Dear Sir, Now as GST regime, GST is also charged if supplier is charging Freight on invoice. In some cases, supplier simply levies Freight without SAC code and charges GST. Our query is whether we should o....
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....pen a SAC code and show credit on freight amount separately ? or it should be apportioned over the products purchased and taken credit according to that ? Please clarify ? CA Gorav Goyal Reply By KASTURI SETHI: The Reply: Transaction value is required to be inclusive of all expenses including freight, insurance etc. as per Section 15 (1) of CGST Act. You can take ITC without apportionment, if ....
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....otherwise eligible. Reply By Ganeshan Kalyani: The Reply: If the rate of product on invoice is same then no need to apportion the freight element. Reply By MARIAPPAN GOVINDARAJAN: The Reply: Up to the turnover of ₹ 1.5 crores (I suppose) the supplier need not indicate HSN code in the invoice. GST can be levied as per the existing rate. In such cases, in my opinion, you may take credit f....
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....or the entire amount. Reply By MADAN RAHEJA: The Reply: Agreed with Sh. Sethi. Since freight is part of transaction value of goods, no need for showing seperate SAC code for it. Only HN for the goods, if applicable, may be mentioned. Reply By Kishan Barai: The Reply: Let's make it simple For e.g. you buy product of 100 INR with 18% GST with freight cost 10 INR so your total bill would be ....
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....110 + 18% = 129.28 Now you buy product of 100 INR with 28% GST with freight cost 10 INR, your bill would be 110 + 28% = 148.8 Freight would be considered as a composite supply in GST Reply By Kishan Barai: The Reply: SAC Code of freight would be shown by freight forwarder to your supplier availing his services but when you buy from him, he is not doing freight business; he is supplying produc....
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....ts to you. Reply By CA BIJENDER KUMAR BANSAL: The Reply: Thanks to all for your reply. Mr. Kishan Barai, I understood that he is not doing transport business and so no need to show SAC code by that supplier in Invoice. Then when we taken ITC , under which code we should take credit:- HSN code of product or we should take in SAC code of Freight. ? Please clarify. Reply By KASTURI SETHI: The R....
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....eply: HSN code of product. Reply By Kishan Barai: The Reply: HS Code Reply By CA BIJENDER KUMAR BANSAL: The Reply: sir, if there are two/three products having different HS code then on which HS code we will show ITC on that Freight ? Reply By KASTURI SETHI: The Reply: Sir,. When the element of freight has been included into transaction value for payment of GST, we should not talk of indepe....
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....ndent existence of freight for ITC. Pl. Read definition of Composite Supply and mixed supply along with definition of transaction value. Picture will become clear. Reply By CA BIJENDER KUMAR BANSAL: The Reply: Sir, i totally agree with you. we should not talk individually about freight. Basically i want to understand how should we claim that gst on Freight. Should we apportion it over main pro....
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....ducts and show accordingly in different hsn code or in any of hsn code over invoice ? Reply By subramanian vijayakumar: The Reply: It) is composite supply. I agree with the experts view no need for hscn Reply By Kishan Barai: The Reply: If it's mixed supply freight would be charged as per Product with maximum GST rate. Reply By HimansuSekhar Sha: The Reply: Please refer q 47 of tweet FAQ....
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..... Reply By shashi pandey: The Reply: If in a Tax invoice, there are different gst% i.e. 5%,12% etc. on line items,then at what % GST will charge on freight charges Please Advice Reply By KASTURI SETHI: The Reply: Rate of GST on amount of freight has no link with the applicable rate of GST on goods. Both are separate. If you have some other doubt, mention specifically.<br> Discussion Forum - K....
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