Frieght charges on composite supply exempted goods, Goods and Services Tax - GST

[Mohit Chhabra]

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 supplied

 

 

Posts / Replies

[KALLESHAMURTHY MURTHY]

Sir, 

In my opinion, if the freight charges are separately charged in the bill, GST attracts for the supply of service.

[Shilpi Jain]

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 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.