Transport of goods by a manufacturing Company

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..... If we charge Transportation Charges for supply of products manufactured in our own company, should we charge GST on the value of Freight Charges. If so what rate should be used and what will be the HSN code for the Freight Charges. - Reply By KASTURI SETHI - The Reply = Pl. elaborate the query. Who is supplier of service ? Who is receiver of service ? What is relationship between the two persons .....

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..... ? What is constitution of both (supplier and receiver) ? - Reply By SayadAziz Ahmad - The Reply = 1. Company manufacturing furniture. 2. Sends furniture to customers in company owned vehicle. 3. Charges freight in its invoice alongwith manufactured product. 4. Company is presently charging same rate of gst for freight as it charges for naufactured products HSN code. Question is what GSN sho .....

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..... uld be used for freight. Should it charge freight also under HSN 9403? - Reply By KASTURI SETHI - The Reply = Practice adopted at serial no.4 above is correct. In this scenario, it takes the shape of composite supply. HSNs of both kinds of supplies should be mentioned separately on the invoices. - Reply By Ganeshan Kalyani - The Reply = I agree with the views of Sri Kasturi Sir. It is .....

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..... a composite supply and GST rate of main material i.e. furniture in your case applies to freight charges as well. You are supplying furniture and not freight. Freight is only incidental to main supply. It takes a form of composite supply. You are correctly following the rule. - Reply By SayadAziz Ahmad - The Reply = Thanks to Mr. Kasturi for his valuable inputs and thanks to all others who ratif .....

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..... ied his views. - Transport of goods by a manufacturing Company - Query Started By: - SayadAziz Ahmad Dated:- 30-6-2021 Value Added Tax - VAT-CST - Got 5 Replies - VAT and Sales Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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