GST on Freight Charges - Goods and Services Tax - GST

Dear Experts, Please verify the correctness of contents of the below table in case of freight charges reimbursement by the Company to C F. Please note in the 3rd case, paying GST out of the fixed amount received from the Company will be a loss to the C F and the Company does not insists to raise an Invoice and If GST is included in invoice , Co may take ITC and in effect the actual cost of transportation will be higher than the rate at which it is reimbursed. Sl No Contract Nature Explanation 1 Contract between Company and C F is FOR. But C F incur TP Charges but later reimbursed by Company at a Fixed Rate. C F hires a GTO for the delivery. Responsibility to deliver to the place of destination is upon the Company. Under Rule 33 , C F can Act as Pure Agent and raises invoices against the Company for the reimbursement of actual TP Charges without GST. If the Company pay at a fixed rate over and above the Actual TP charges, the excess is leviable to GST. The C F may pay GST under RCM on the TP charges paid by it to GTO. 2 Contract between Company and C F is Ex-WH C F incur TP charges own its own by hiring a GTO. Responsibility of Inward Transportation is upon the C F. No Reimbursement of expenses takes place. The C F may pay GST under RCM on the TP charges paid by it to GTO. 3 Contract between Company and C F is FOR. C F uses its own vehicle for the inward transportation and the Company reimburse the same at a fixed rate. Responsibility of inward transportation is upon Company. The concept of Pure Agent cannot be applied as no third-party GTO is involved. C F Agent must raise a GST Invoice against the Company for the actual transportation cost received from the Company. 4 Contract between Company and C F is Ex-WH C F uses its own vehicle for the Transportation. Responsibility of Inward Transportation is upon the C F. No Reimbursement of expenses takes place. No RCM as no GTO/GTA is involved.