Example

M/s ABC supplied product X, Y, Z together and raised single invoice cum Bill of Supply with freight cost of Rs 2100. Tariff rate under GST is 5% on ‘X’, ‘Nil’ duty on ‘Y’ & 8% duty on ‘Z’. The query arises at what rate freight is chargeable on invoice.

Answer

In this situation freight shall be charged on at the highest rate of supply. Thus in this case freight shall be charged @ 8 %.