Should i charge gst on shipping

Exports of goods and services are generally GST-free. If you're registered for GST, this means:. There are some circumstances where GST must be paid, such as if the goods remain in Australia for more than 60 days after they are sold. You should refer to the Australian Taxation Office for detailed information on GST rules and your obligations as an Australian business. Find out when you need to charge GST here. See Austrade's export market profiles for information on a range of overseas markets.

The new Austrade experience gives you access to services on demand to take the next step in your export journey and go further, faster. Type of GST charged on freight forwarding is based on whether the transportation is national or international. If in case of domestic freight, transportation happens from a place in India to another place in the country. In this case, both points of origin and destination have to be inside the country.

On international transportation, the international freight rules are applied. This applies if both the place of origin and destination are outside India, if one of them outside India, or both outside India. According to GST law, the place of transportation is defined as:. It depends on which category the service recipient falls into as per reverse charge provisions under GST. Let us now answer some of the frequently asked questions to know the impact that GST has on shipping charges.

Earlier to the implementation of GST, a manufacturer had to set up warehouses in multiple locations, although he was based out of different states to avoid CST levy and state entry taxes. The goods from his manufacturing plant would reach his own warehouses across the country, before reaching distributors and retailers.

This led to higher operating costs. Under GST, manufacturers have cut down on the number of warehouses, and because of this, warehouses now have to handle a larger input. This makes the manufacturers use a larger truck, to carry the higher tonnage of goods. The tax should be charged on the total value of supply. If the transportation cost is included, then GST has to be charged at the same rate of tax charged on supply. If you are not charging freight charges in the invoice and is directly paid by the buyer of goods, then GTA provision has to comply.

Any person who provides service in relation to transport of goods by road, and issues a consignment note. This becomes the GTA. Others might hire vehicles for goods transportation, but only those issuing a consignment note are considered as a GTA. A consignment note is a document against the receipt of goods, issued by a goods transportation agency. This is issued for the purpose of transport of goods by road in a goods carriage. A consignment note will be serially numbered and has the names of the consignor and consignee buyer and seller.

It also has a registration number of the goods carriage in which the goods are transported, details of the goods, place of origin, and place of destination. The below goods will not be applicable for GST only when transportation is done by a goods transport agency :. Hence, when the tax is not payable, then input tax credit claims do not arise. Thank you for your response. The 1 GST billing solution for your business Create, edit, share invoices on- the-go Also available on web.