GST on Freight

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..... GST on Freight
Query (Issue) Started By: - varsha jain Dated:- 23-7-2019 Last Reply Date:- 27-7-2019 Goods and Services Tax - GST
Got 6 Replies
GST
Hello Sir, Mr X is purchasing Goods from Mr. A which is Shipped to Mr. Z. Mr X pays the Freight.The sale price Quoted to Mr. Z is inclusive of freight. My Query is that is Mr X liable to Pay RCM on Freight (Although he is Paying GST on S .....

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..... ale which is Inclusive of freight) Reply By KASTURI SETHI: The Reply: No double taxation is required by GST law or any other law. What is the GST rate of goods supplied by A to X ? Reply By Ganeshan Kalyani: The Reply: They are two separate transaction. If transporter raised invoice on you then you have to pay tax under RCM. The freight component which you add in your customer billing is to re .....

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..... cover that freight cost. The tax which is paid under RCM on freight can be claimed as credit to offset against the tax payable on outward supply. Reply By varsha jain: The Reply: Dear Sir, as you said the freight component which you add in your customer billing is to recover that freight cost but i have to Charge GST on that Freight Amt being Composite Supply.and i have to pay under RCM Also Re .....

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..... ply By Madhavan iyengar: The Reply: As explained by Ganeshan Kalyaniji is correct There are two transactions first when X is purchasing goods and engages a transporter and pays to transporter then X has to pay GST on reverse charge being services availed from GTA and take credit of RCM paid Second transaction when X recovers the Freight on sale from Z, X has to charge the GST on entire value ( .....

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..... goods + freight) and rate of gst is as applicable to the HSN code of goods supplied. Reply By KASTURI SETHI: The Reply: I re-read query and replies. I agree with both Sh.Ganeshan Kalyani Ji and Sh. Madhavan Iyengar Ji. Well elaborated by Sh.Madhavan Ji. I think the querist is not under doubt now. Reply By Madhavan iyengar: The Reply: thank u kasturi sir for your kind words
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..... um - Knowledge Sharing .....

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