TaxTMI 
TaxTMI 
Frieght charges on composite supply exempted goods
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....rieght charges on composite supply exempted goods<br> Query (Issue) Started By: - Mohit Chhabra Dated:- 11-3-2025 Last Reply Date:- 13-3-2025 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>I sell wood charcoal (exempted) hsn 4402, if I add frieght charges in invoice , what will be tax on frieght, will it also be nill as frieght tax rate in case of composite supply is based on tax on goods....
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.... supplied Reply By KALLESHAMURTHY MURTHY: The Reply: Sir, In my opinion, if the freight charges are separately charged in the bill, GST attracts for the supply of service. Reply By Shilpi Jain: The Reply: Whether a composite supply or not would not depend on how the price is charged. If the transportation charges is for the product sold, then composite supply and no GST....
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.... in this case. There is an example given in the law which is similar and in that case also it is stated that the transportation charges will be treated as composite supply of goods. Reply By KASTURI SETHI: The Reply: The querist appears to be pro-active in this context. While entering into contract with the buyer, the terms and conditions of the agreement need to be drafted in such a way so as ....
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....to include freight charges in the agreed upon price. Thus the transportation expenses/charges will be treated as composite supply as defined in Section 8 (a) of CGST Act, 2017. Such agreement is legally valid contract as per Section 10 Indian Contract Act, 1872.<br> Discussion Forum - Knowledge Sharing ....