Items which are need to be included in Invoice, Goods and Services Tax - GST

[Sangeetha D]

"As a registered taxpayer engaged in the supply of exempted goods (e.g., garlic), I would like to clarify the GST treatment of transportation charges. If I sell garlic worth ₹5,00,000 (which is exempt from GST) and incur transportation charges of ₹7,000, can I include the total value of ₹5,07,000 as exempt in my invoice, or am I required to charge GST on the transportation charges separately?

Posts / Replies

[Shilpi Jain]

If you are the supplier and you are selling garlic for a price along with transportation up to customer place, it is a composite supply and not liable to GST since principal supply is garlic which is exempt.

[Shilpi Jain]

Even otherwise, if its a mere transportation of garlic, and if garlic is in its original form without any processing, etc, then it is transportation of agricultural produce which is exempt from GST.

[Sangeetha D]

Thanks for your reply mam,

Selling garlic along with transportation up to customer place. Which means i can add items like this , in my invoice. Is that right Mam.

Description               HSN/SAC       Tax                   Qty          Rate              Value 

Garlic                        0703                0%                  xxx            xxx                xxx

Transport Charges   9965                 0%                   xxx          xxx               xxx

[Lakshya Goyal]

You need to use same HSN of Garlic 0703 for transportation charges as well. Don't use 99 SAC for transportation, as it would imply separate service and not a composite supply. If using separate SAC, transportation charges would be taxable.

[Lakshya Goyal]

Edit: Also SAC code can be used to attract exempt supply of transportation, if garlic is without processing and is a agricultural produce. As Mentioned above by Shilpi Jain Ji.