Our product falls in
12% GST rate. We recover courier charges from our client by mentioning the same
in the invoice itself.
The issue is that-
courier company charges 18% to us.
How should we charge
the same from our client and at what rate??
price(basic) rs. 6000
charged by courier company: Rs .460
SGST @9%: Rs.
How should we make a
single invoice by mentioning the courier charges in the invoice? What rate to
apply? Kindly show us.
As per section 15(2)(b) of CGST Act, the value of supply shall include any
amount that the supplier is liable to pay in relation to such supply but which
has been incurred by the recipient of the supply and not included in the price
actually paid or payable for the goods or services or both.
above provisions make it clear that, courier charge is the part of the value of
supply and accordingly the rate of GST applicable on sale of product i.e. 12%
is applicable on courier charges too.
as you are taking services of courier company as input services, ITC is
available in respect of payment made to courier company.