What is tax applicable on freight/insurance added as per valuation rules?

We have two hns supply and making invoice One product HSN having tax rate 18 % Second product HSN having tax rate 5 % We add freight separately in the bill what is tax applicable on freight/insurance added as per valuation rules. 5 % or 18 %

Add Comment
2 Answer(s)

The transportation and insurance value will be divided on the scientific basis and tax proportionately between 5% and 18%. Further, Scientific basis in case of insurance will be value of goods (generally). In case of transportation may be on basis of area or other basis.

Answered on June 6, 2017.
Add Comment

Currently there is no clear guidance on this issue. If this matter remains un-addressed by law it will be better to prepare separate invoices to avoid litigation.

Answered on June 6, 2017.
Add Comment

Your Answer

Gen GST