Place of supply rules determine GST on freight and whether freight is included in export transaction value for refunds.
GST treatment of freight depends on place of supply rules for transportation services and the transaction value valuation principle. Transportation contracted by a supplier to deliver exported goods is a separate supply, but freight charged by the supplier is included in the transaction value of the goods under Section 15 and thus taxable when exports are made with payment of tax. Historical exemptions for certain carriage modes affected freight taxation and refunds; recent withdrawal of some exemptions and proposed statutory changes alter place of supply determinations and refund implications. (AI Summary)

Input tax credit restriction: GST bars ITC on goods or services used for corporate social responsibility obligations under the Companies Act.
The Finance Bill, 2023 amends the GST disallowance list to provide that input tax credit shall not be available for goods or services received by a taxable person which are used or intended to be used for activities relating to obligations under corporate social responsibility, creating a categorical exclusion for CSR related inputs and raising interpretive issues about scope, timing and applicability. (AI Summary)