Freight charges, in simple terms, can be said to be a charge paid for carriage / transportation of goods. Goods can be transported through any mode i.e. air, land or sea. Under the present article we would see the GST rates as applicable to freight charges, exemption list and fixing of the GST liability on freight charges.
GST RATE ON FREIGHT CHARGES –
The rate of GST on freight charges is 5%.
EXEMPTION LIST – GST ON FREIGHT CHARGES
Goods and Service Tax is not payable on the freight charges for the transportation of following goods –
1. Transport of agricultural produce;
2. Transport of milk, salt and food grains including flour, pluses and rice;
3. Transport of organic manure;
4. Transport of Defence or military equipment;
5. Transport of newspaper or magazine which are registered with the Registrar of Newspaper;
6. Transport of relief material which is meant for the victims of the natural or man-made disasters, accidents, calamities or mishaps;
7. Transport of goods, where the gross amount charged on a consignment transport in the single carriage is less than INR 1500;
8. Transport of goods, where the gross amount charged for transportation of all such goods for single consignee is less than INR 750.
FIXING OF THE GST LIABILITY ON FREIGHT CHARGES –
Generally, three parties are involved one is consignor i.e. the sender of the goods, second is the transporter i.e. GTA and third is the consignee i.e. the receiver of the goods.
In order to fix the GST liability, it is important to analyze the person who is receiving the freight service. The recipient of the freight service would be the one who is paying freight charges i.e. if the consignor (the sender of the goods) pays the freight charges to GTA, then, he will be the recipient of the freight service and thus the consignor would intend liable to pay the GST, however, if the freight charges are paid by the consignee (i.e. the receiver of the goods), then, he will be liable to pay the GST.
Generally, GST is payable by the service provider, however, in case of GTA, the GST on freight charges will be paid by either the consignor or the consignee, on the basis of the recipient of freight service, on a reverse charge basis, if they belong to any of the following specified category of person –
- A factory which is registered under the Factories Act, 1948;
- A society which is registered under the Societies Registration Act or under any other law;
- A co-operative society;
- A person registered under the Goods and Service Tax Act;
- A body corporate;
- A partnership firm;
- An Association of persons;
- A casual taxable person.
The above specified categories of persons, if receives the freight service, are liable to pay GST on a reverse charge basis. The specified categories of persons are required to obtain registration under GST and it must be noted that the benefit of the threshold limit is not available to such specified categories of person availing the freight service.
It must be noted that if the recipient of the freight service does not fall within the above specified category, GTA would be liable to pay GST on freight charges. In such case, GTA has two options either to pay GST @5% without availing the benefit of ITC or to pay GST @12% and avail benefit of ITC.
need more clarification on import & export providing Freight forwarding service outside to URD.
The Indian GTA provide service to inland & outland the applicable gst rate & their is any ITC can avail
Sir, My Firm is consignor and GTA himself, I had to transport my goods himself to consignee. Can we generate income from vehicles in Firm Account and what Ratio GSt has to paid. Thanking you
CAN I ADD FREIGHT CHARGESIN THE TAX INVOICE OF CUSTOMER
for example-
item value-100
pkg & forwarding-10
freight-10
total taxable value =100+10+10=120
and then apply tax as per your supply
I PAID FREIGHT RS.800/- TO NITCO ROADWAYS AND NOT SHOWN IN GSTR-1 BUT IT SHOW IN MY GSTR3B AND 2B. IT WILL MISMATCH OR NOT.
we purchase good without freight charge but .if we raised debit note against bill with freight outward.
can we charge gst on freight or not ?
If we supply goods and send by courier and bill both for goods and courier in our invoice then what will be HSN or SAC number for courier charges ?
What will be the GST rate for courier charges, will it be the same as the goods or different. currently the goods we manufacture are charged 5 % GST
Suppose , A vendor is supplying me an item with 12% GST , and in that bill vendor would be charging both freight and P&F, how much GST would they charge on freight and p&F , 12% or 18%? It is not a composite supply.
I am Recipient and goods revived under Gst Act with billty of fright on road transport.in codisition i am pay tax on fright with Rcm.
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Transportation charges monthly limt expense
what @ gst will charge when we issue debit not of freight which i pay against my goods sent to other state which is garments &both vendor & customer both are register in gst
SIR
LORRY FRIEGHT SERVICE HSN CODE ?
20,000/- ABOVE LORRY FRIEGHT PAID.
YEARY 25,00,000/- LAKHS PAID LORRY FRIEGHT
NATIONAL LOGISTICS TRANSPORT DEALER AND GST DEALER
HSN CODE ?
Sir, For freight on transport of personal goods on account of transfer being Bank employee, what is rate of GST applicable
is freight received by exporters is taxable under gst
I have a transport vendor in rallis india limited its produce the pectisides and fertilisers what is the rate of gst for fright charges
if the freight charges less than 750, when HSN/SAC code?
Exemption from payment of under GST UNDER RCM Rs 5000 or Rs 70500.00 for single transaction.
Please take care and confirm.
Regards Chaturvedi
Nacre Industries Kolkata
very informative and self explainatory
Dear sir
What is current status of gst on ocean freight on container import at CIF condition
Simply and neatly explained sir