Table of Contents
Is GST applicable on freight charges on a sales invoice?
If the freight charge is included, then GST on freight charges must be levied at the tax rate same as the rate charged on supply of the goods or consignment. However, as per the GST law, if the freight is exclusive and separately charged, then the GST rate on transportation service is 5\%.
Is packing charges taxable under GST?
Yes, all All expenses like freight/ transport/ packing which are charged in the Sale Invoice are taxable in GST. GST shall be charged at the rate of these services at the rate applicable to goods.
How do I add packing charges to GST invoice?
How to add transport/packing charges in invoice
- Step 1 : Go to Sale Invoice menu.
- Step 2 :Click on “Add new” button.
- Step 3 : On Sale Invoice page click on “Add New Transport / Packaging Charges” button in Product Items section.
- Step 4 : Fill the details in pop up for charges & click on “Save” button given below.
What is GST rate on packing charges?
HSN Code 9606
| HS Code | Description | GST\% |
|---|---|---|
| 96063090 | PRTS OF BUTTON ,Products include: Packing Charge | 18\% |
What is a packing charge?
Packing charges includes the material used for packing and the labor charges paid in respect of packing of material. Some time the packing of goods become compulsory because without packing the goods it is not possible to deliver the goods to the consumer.
What freight charges include?
Freight charge, also known as freight rate, is the amount paid to a carrier company for the transportation of goods from the point of origin to an agreed location. The freight charge is calculated based on the type of mode of transportation and the distance between the pickup place and the place of destination.
Are freight charges expense?
What is Freight Out? Freight out is the transportation cost associated with the delivery of goods from a supplier to its customers. This cost should be charged to expense as incurred and recorded within the cost of goods sold classification on the income statement.
What type of expense is freight in?
Usually, freight expenses are recorded as other “general expenses.” How the cost is recorded may depend on who is paying the freight cost and whether the cost is included in the asset’s value/price.