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All QuestionsCategory: GST CompliancesGst on transportation of goods
Profile photo of kapil kantkapil kant asked 2 years ago

Gst on transportation of goods

The assessee has sale the goods. The assessee shall arrange the service of transportation. The transporter will billed to the assessee. On the same, the assessee will pay the GST under RCM. Now, the assessee has recovered the same from the buyer of the goods. Hence, the assessee has charged the same in the invoice. The question are as followe.
1. Whether GST is applicable on recovery of freight charges
2. If assessee has mark up the freight & recover the same in excess what he paid, then whether GST applicable or not, and if applicable, on which amount i.e. full amount or only excess amount. 3. If GST is applicable, then @ what rate it will be charges, whether @ 5 % or @ the rate of goods, which are subject matter of sale under invoice. We recover this amount from a foreign buyer in euros. We will issue an invoice for that in euros.

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1 Answers
Profile photo of Lavneet SharmaLavneet Sharma answered 2 years ago

1.yes, If the rent is shown separately in the bill, then the GST. Will charge 
2.Basically the tax should be charged on total value of supply.
3.GST will be charged at the rate of GST on the item. Because Our motive here is to do item sales.