Transportation rate of gst, Goods and Services Tax - GST

[Bayyareddy DK]

Dear Sir,

My client is supplying goods in same invoice with two rate of taxes 18% and 12%. He is also delivering the goods to the customer and charging transportation charges. What rate of GST shall apply on transportation charges. whether highest rate of invoice 18%, or 5% rate applicable to transportation?. Please advice

Posts / Replies

[Shilpi Jain]

The transportation provided will not be a separate and has to be considered as a composite supply of goods. Since 2 rates of for goods sold can proportion the transport cost on reasonable basis and charges 12 and 18% on the respe tive proportion,..

In case you don't want to get into the Hassel of proportioning then charge 18% for entire transportation if the customer agrees to pay.

[Ganeshan Kalyani]

Sir if the customer can get ITC you can prefer to charge 18%.