{"id":3591,"date":"2018-01-09T12:34:05","date_gmt":"2018-01-09T07:04:05","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=3591"},"modified":"2021-12-24T17:46:45","modified_gmt":"2021-12-24T12:16:45","slug":"how-to-charge-gst-on-expenses-in-the-invoice","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/how-to-charge-gst-on-expenses-in-the-invoice\/","title":{"rendered":"How to charge GST on expenses in the Invoice"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69ea8285e8506\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69ea8285e8506\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/how-to-charge-gst-on-expenses-in-the-invoice\/#How_to_charge_GST_on_expenses_in_the_Invoice\" title=\"How to charge GST on expenses in the Invoice\">How to charge GST on expenses in the Invoice<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/how-to-charge-gst-on-expenses-in-the-invoice\/#REIMBURSEMENT_OF_EXPENSESPURE_AGENT\" title=\"REIMBURSEMENT OF EXPENSES\/PURE AGENT.\u00a0\">REIMBURSEMENT OF EXPENSES\/PURE AGENT.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/how-to-charge-gst-on-expenses-in-the-invoice\/#_Conclusion\" title=\"\u00a0Conclusion:\">\u00a0Conclusion:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/how-to-charge-gst-on-expenses-in-the-invoice\/#_Tax_Invoice_under_Goods_and_Service_Tax\" title=\"\u00a0Tax Invoice under Goods and Service Tax\">\u00a0Tax Invoice under Goods and Service Tax<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<figure id=\"attachment_8803\" aria-describedby=\"caption-attachment-8803\" style=\"width: 660px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/GST-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-8803\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/GST-1.jpg\" alt=\"www.carajput.com; GST\" width=\"660\" height=\"384\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/GST-1.jpg 660w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/GST-1-300x175.jpg 300w\" sizes=\"(max-width: 660px) 100vw, 660px\" \/><\/a><figcaption id=\"caption-attachment-8803\" class=\"wp-caption-text\">www.carajput.com; GST<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"How_to_charge_GST_on_expenses_in_the_Invoice\"><\/span>How to charge GST on expenses in the Invoice<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are following possible options for charging expenses like: Freight, Packing Charges, and Loading\/Unloading Charges:<\/p>\n<table width=\"654\">\n<tbody>\n<tr>\n<td colspan=\"2\" width=\"443\"><strong>Options<\/strong><\/td>\n<td width=\"211\"><strong>Appropriate<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"91\"><strong>Option \u00a01<\/strong><\/td>\n<td width=\"352\">Charge <a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">GST<\/a> (at rate on services respectively) on the expenses paid in the invoice with value of goods.<\/td>\n<td width=\"211\">Most Appropriate<\/td>\n<\/tr>\n<tr>\n<td width=\"91\"><strong>Option \u00a02<\/strong><\/td>\n<td width=\"352\">Charge freight &amp; other expenses paid in bill but do not charge GST in them.<\/td>\n<td width=\"211\">Lawfully wrong*<\/td>\n<\/tr>\n<tr>\n<td width=\"91\"><strong>Option \u00a03<\/strong><\/td>\n<td width=\"352\">A Charge freight &amp; other expenses as reimbursement as Pure Agent and do not charge GST on them (2 Invoices)<\/td>\n<td width=\"211\">Not Appropriate<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>* Note:<\/strong> Any amount charged in invoice must be either charged to GST or exempt under any provision and must be mentioned on the invoice<\/p>\n<p><strong>\u00a0<\/strong><strong>Option 1:<\/strong> <strong>Charge <a href=\"https:\/\/www.caindelhiindia.com\/blog\/application-of-gst-on-contribution-by-rwa-members\/\">GST <\/a>(at rate on services respectively) on the expenses paid in the invoice with value of goods:<\/strong><\/p>\n<table>\n<tbody>\n<tr>\n<td width=\"73\"><strong>S. No.<\/strong><\/td>\n<td width=\"96\"><strong>HSN Code<\/strong><\/td>\n<td width=\"336\"><strong>Particulars<\/strong><\/td>\n<td width=\"133\"><strong>Value<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"73\">1.2.<\/td>\n<td width=\"96\">XXXXXXXXXX<\/td>\n<td width=\"336\">Name of GoodsName of Goods<\/td>\n<td width=\"133\">10000.0015000.00<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" width=\"505\">CGST @ 2.5%\u00a0 \u00a0\u00a0\u00a0\u00a0625.00SGST @ 2.5% \u00a0\u00a0\u00a0\u00a0\u00a0625.00<\/td>\n<td width=\"133\">1250.00<\/td>\n<\/tr>\n<tr>\n<td width=\"73\">1.<\/td>\n<td width=\"96\">XXXXX<\/td>\n<td width=\"336\">Freight<\/td>\n<td width=\"133\">500.00<\/td>\n<\/tr>\n<tr>\n<td width=\"73\">2.<\/td>\n<td width=\"96\">XXXXX<\/td>\n<td width=\"336\">Packing charges<\/td>\n<td width=\"133\">50.00<\/td>\n<\/tr>\n<tr>\n<td width=\"73\">3.<\/td>\n<td width=\"96\">XXXXX<\/td>\n<td width=\"336\">Loading Charges<\/td>\n<td width=\"133\">100.00<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" width=\"505\">CGST @ 9% \u00a0\u00a0\u00a0\u00a0\u00a0\u00a058.50SGST @ 9%\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 58.50<\/td>\n<td width=\"133\">117.00<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" width=\"505\"><strong>TOTAL<\/strong><\/td>\n<td width=\"133\"><strong>27017.00<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Option 2:<\/strong> <strong>Charge freight &amp; other expenses paid in bill but do not charge <a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">GST<\/a> in them:<\/strong><\/p>\n<table>\n<tbody>\n<tr>\n<td width=\"73\"><strong>S. No.<\/strong><\/td>\n<td width=\"96\"><strong>HSN Code<\/strong><\/td>\n<td width=\"336\"><strong>Particulars<\/strong><\/td>\n<td width=\"133\"><strong>Value<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"73\">1.2.<\/td>\n<td width=\"96\">XXXXXXXXXX<\/td>\n<td width=\"336\">Name of GoodsName of Goods<\/td>\n<td width=\"133\">10000.0015000.00<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" width=\"505\">CGST @ 2.5%\u00a0\u00a0\u00a0\u00a0\u00a0 625.00SGST @ 2.5%\u00a0\u00a0\u00a0\u00a0\u00a0 625.00<\/td>\n<td width=\"133\">1250.00<\/td>\n<\/tr>\n<tr>\n<td width=\"73\"><\/td>\n<td width=\"96\"><\/td>\n<td width=\"336\">Freight<\/td>\n<td width=\"133\">500.00<\/td>\n<\/tr>\n<tr>\n<td width=\"73\"><\/td>\n<td width=\"96\"><\/td>\n<td width=\"336\">Packing charges<\/td>\n<td width=\"133\">50.00<\/td>\n<\/tr>\n<tr>\n<td width=\"73\"><\/td>\n<td width=\"96\"><\/td>\n<td width=\"336\">Loading Charges<\/td>\n<td width=\"133\">100.00<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" width=\"505\"><strong>TOTAL<\/strong><\/td>\n<td width=\"133\"><strong>26900.00<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Option 3:<\/strong> <strong>Charge freight &amp; other expenses as reimbursement as Pure Agent and do not charge GST on them (2 Invoices):<\/strong><\/p>\n<p><span style=\"text-decoration: underline;\">Tax Invoice<\/span>:<\/p>\n<table>\n<tbody>\n<tr>\n<td width=\"73\"><strong>S. No.<\/strong><\/td>\n<td width=\"96\"><strong>HSN Code<\/strong><\/td>\n<td width=\"336\"><strong>Particulars<\/strong><\/td>\n<td width=\"133\"><strong>Value<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"73\">1.2.<\/td>\n<td width=\"96\">XXXXXXXXXX<\/td>\n<td width=\"336\">Name of GoodsName of Goods<\/td>\n<td width=\"133\">10000.0015000.00<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" width=\"505\">CGST @ 2.5%\u00a0\u00a0\u00a0\u00a0\u00a0 625.00SGST @ 2.5%\u00a0\u00a0\u00a0\u00a0\u00a0 625.00<\/td>\n<td width=\"133\">1250.00<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" width=\"505\"><strong>TOTAL<\/strong><\/td>\n<td width=\"133\"><strong>26250.00<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"text-decoration: underline;\">Bill of Supply<\/span>: Reimbursement Charges as Pure Agent<\/p>\n<table>\n<tbody>\n<tr>\n<td width=\"73\"><strong>S. No.<\/strong><\/td>\n<td width=\"432\"><strong>Particulars<\/strong><\/td>\n<td width=\"133\"><strong>Value<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"73\"><\/td>\n<td width=\"432\">Freight\u00a0 (Charges recovered as Pure Agent)<\/td>\n<td width=\"133\">500.00<\/td>\n<\/tr>\n<tr>\n<td width=\"73\"><\/td>\n<td width=\"432\">Packing Charges\u00a0 (Charges recovered as Pure Agent)<\/td>\n<td width=\"133\">50.00<\/td>\n<\/tr>\n<tr>\n<td width=\"73\"><\/td>\n<td width=\"432\">Loading Charges\u00a0 (Charges recovered as Pure Agent)<\/td>\n<td width=\"133\">100.00<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" width=\"505\"><strong>TOTAL<\/strong><\/td>\n<td width=\"133\"><strong>650.00<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Input tax paid on such charges<\/p>\n<h4><span class=\"ez-toc-section\" id=\"REIMBURSEMENT_OF_EXPENSESPURE_AGENT\"><\/span><span style=\"color: #ffcc00;\"><b>REIMBURSEMENT OF EXPENSES\/PURE AGENT.\u00a0<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/0001-scaled.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-11953\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/0001-791x1024.jpg\" alt=\"\" width=\"615\" height=\"797\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/0001-791x1024.jpg 791w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/0001-232x300.jpg 232w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/0001-768x994.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/0001-1187x1536.jpg 1187w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/0001-1583x2048.jpg 1583w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/01\/0001-scaled.jpg 1978w\" sizes=\"(max-width: 615px) 100vw, 615px\" \/><\/a><strong>Notification No. 13\/2017 (Services under Reverse Charge Mechanism)<\/strong><\/p>\n<table>\n<tbody>\n<tr>\n<td width=\"56\"><strong>S. No.<\/strong><\/td>\n<td width=\"160\"><strong>Category of Service<\/strong><\/td>\n<td width=\"132\"><strong>Supplier of Service<\/strong><\/td>\n<td width=\"290\"><strong>Recipient of Service<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"56\">1<\/td>\n<td width=\"160\">Supply of Services by a goods transport agency (GTA) in respect of transportation of goods by road<\/td>\n<td width=\"132\">Goods Transport Agency (GTA)<\/td>\n<td width=\"290\">(a)\u00a0 any factory registered under or governed by the Factories Act, 1948(63 of 1948)(b)\u00a0 any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or(c)\u00a0 any co-operative society established by or under any law<\/p>\n<p>(d)\u00a0 any person registered under the Central GST Act or the Integrated GST Act or the State GST Act or the Union Territory GST Act<\/p>\n<p>(e)\u00a0 body corporate established, by or under any law<\/p>\n<p>(f)\u00a0\u00a0 any partnership firm whether registered or not under any law including association of persons<\/p>\n<p>(g)\u00a0 Any casual taxable person.<\/p>\n<p><strong>\u00a0<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong><br \/>\nNote:<\/strong> The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification.<\/p>\n<p><strong>Rate of tax on services from GTA:<\/strong> 5% (without ITC)<\/p>\n<p>Input Tax Credit under RCM<\/p>\n<ul>\n<li>The service recipient can avail Input Tax credit on the Tax amount that is paid under reverse charge on goods and services.<\/li>\n<li>The only condition is that the goods and services are used or will be used for business or furtherance of business.<\/li>\n<li>Unfortunately, ITC cannot be used to pay output tax, which means that payment mode is only through cash under reverse charge.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"_Conclusion\"><\/span><strong>\u00a0<\/strong><strong><span style=\"text-decoration: underline;\">Conclusion:<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Consignor has to pay <a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">GST<\/a> @ 5% on transportation charges of which he can take Input Tax Credit against the Output tax from supply of goods or services.<\/p>\n<p>Popular blog:<\/p>\n<h4><span class=\"ez-toc-section\" id=\"_Tax_Invoice_under_Goods_and_Service_Tax\"><\/span><a href=\"https:\/\/carajput.com\/blog\/tax-invoice-under-goods-and-services-tax\/\">\u00a0Tax Invoice under Goods and Service Tax<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>How to charge GST on expenses in the Invoice There are following possible options for charging expenses like: Freight, Packing Charges, and Loading\/Unloading Charges: Options Appropriate Option \u00a01 Charge GST (at rate on services respectively) on the expenses paid in the invoice with value of goods. Most Appropriate Option \u00a02 Charge freight &amp; other expenses &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[772,774,777,1842,775,1841],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3591"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=3591"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3591\/revisions"}],"predecessor-version":[{"id":20433,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3591\/revisions\/20433"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=3591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=3591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=3591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}