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If freight or transportation cost is charged se...

If freight or transportation cost is charged separately in the tax invoice, will GST be charged on these? If yes, what are the applicable rates? Also, can RCM provisions be applicable in the transport part of the invoice?

If freight or transportation cost is charged separately in the tax invoice, will GST be charged on these? If yes, what are the applicable rates? Also, can RCM provisions be applicable in the transport part of the invoice?

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Chiranjibi Jul. 06, 2018

If transportation cost is part and parcel of supply then GST has to be charged at the same rate of tax charged on supply. For example, If you are supplying goods to a party and charged taxed at 18%, then you have to charge tax on transport cost also at 18%. Further it should be noticed that if you are not charging freight cost in invoice and is directly paid by buyer or recipient of supply, then he has to comply with GTA provisions including RCM.

If freight or transportation cost is charged separately in the tax invoice, will GST be charged on these? If yes, what are the applicable rates? Also, can RCM provisions be applicable in the transport part of the invoice?

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