Dear Sir, One of my client is engaged in wholesale saree business. He charges 2% commission/adat & packing charges over and above price of saree. What should be GST rate on adat & packing charges, since these are incidental to sale of saree? Note: Saree is taxable @ 5% under HSN 5208

Reply— As per section 15 of CGST Act, value of supply shall include  incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services.

As per the above provision, packing charges is a part of value of supply, therefore 5% GST will be applicable as applicable on principal supply under HSN 5208.