---
title: "Freight Charges in a GST Invoice: Rate, HSN and How to Show It"
description: "Charging transport on your bill? When freight takes the goods' GST rate, when it is billed apart, how to show it on the invoice, with a worked example."
canonical_url: "https://billbabu.com/blog/freight-charges-in-gst-invoice"
markdown_url: "https://billbabu.com/blog/freight-charges-in-gst-invoice.md"
type: "blog-post"
language: "en-IN"
published: "2026-10-27"
last_updated: "2026-10-27"
author: "BillBabu App Team"
category: "Invoicing"
tags: ["freight charges in gst invoice", "transport charges in gst invoice", "how to show freight charges in gst invoice", "is gst applicable on freight charges in invoice", "gst rate on freight charges in invoice", "transport charges in invoice hsn code"]
site: "BillBabu App (https://billbabu.com)"
---
# Freight Charges in a GST Invoice: Rate, HSN and How to Show It

By BillBabu App Team · Published 27 October 2026 · Category: Invoicing

You deliver tiles to a builder's site and add ₹3,000 for the tempo. Does the freight carry GST? At what rate? And where does it go on the bill? The answer depends on who arranges the transport and how you charge for it.

**In short**

- Freight you charge on your own sales bill, for delivering your goods, is usually part of the value of the goods. GST on it is at the goods' rate.
- If the buyer collects the goods or sends his own truck, there is no freight on your bill.
- Passing on a transporter's exact cost without GST works only in narrow "pure agent" cases. Ask your CA first.
- BillBabu App has no freight field: add freight as its own line, or include it in the item rate, as your CA advises.

## The short answer: freight follows the goods

Two parts of the CGST Act point the same way.

**The value of a supply includes delivery costs you charge.** [Section 15(2)(c)](https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/acts/2017_CGST_act/active/chapter4/section15_v1.00.html) adds to the value "incidental expenses, including commission and packing, charged by the supplier to the recipient", and any amount charged "for anything done by the supplier in respect of the supply ... at the time of, or before delivery of goods". Taking your goods to the buyer before delivery is done by you, for that sale.

**Goods sent with transport are one composite supply.** [Section 2(30)](https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/acts/2017_CGST_act/active/chapter1/section2_v1.00.html) defines a composite supply as two or more supplies "naturally bundled" in the ordinary course of business, one of which is the principal supply. Its own illustration fits a dealer's delivery: where goods are packed and transported with insurance, "supply of goods is a principal supply". [Section 8(a)](https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/acts/2017_CGST_act/active/chapter3/section8_v1.00.html) then taxes the whole as a supply of the principal supply.

So when you sell goods and deliver them as part of the deal, the freight on your bill usually takes the goods' GST rate, rather than being billed as a separate transport service at another rate. Delivery terms in your contract can change the picture, so confirm yours with your CA.

## Three common set-ups

| How the goods reach the buyer | What goes on your bill | Tax on the freight |
| --- | --- | --- |
| You deliver, in your own vehicle or one you hire, and charge freight on the same bill | Goods plus freight | Part of the value of the goods; goods' rate (Section 15(2)(c), Sections 2(30) and 8). Confirm with your CA for your delivery terms. |
| The buyer collects, or sends his own truck (ex-works) | Goods only | None on your bill; transport is the buyer's own cost |
| You pay a transporter on the buyer's behalf and recover the exact amount | Goods, plus the reimbursement shown separately | Left out of value only if every pure-agent condition in Rule 33 is met. Ask your CA. |

**About the pure-agent route.** [Rule 33](https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/rules/cgst_rules/active/chapter4/rule33_v1.00.html) needs, among other things, a contract making you the buyer's pure agent, no title to the service you pay for, and recovery of only the actual amount, shown separately on the invoice. Rule 33 is written for suppliers of services, so whether a goods seller can use it at all is a question for your CA. Don't drop GST from a freight line on your own judgement.

## Goods at different rates and one freight charge

Many bills carry items at different GST rates with one transport charge. The law has no per-item formula for this. Ask your CA whether to share the freight across the items or tax it in another way, and then follow that method on every bill.

## How to show freight on the bill

You have two clean options:

1. **A separate line.** For example, "Freight to Jalandhar site, 1 trip, ₹3,000", with the GST rate your CA confirms. This is clearer for the buyer and for your records.
2. **Include it in the item rate.** For example, a delivered rate per box. The bill shows no freight line at all.

Either way, the taxable value and the tax must add up, and Rule 46 still needs the HSN code, description, total value and taxable value. Which code to print on a separate freight line, the goods' HSN or a service code, is a question for your CA. For finding codes, see [how to find the HSN code for your products](https://billbabu.com/blog/how-to-find-hsn-code-products-guide) and our [HSN code finder](https://billbabu.com/tools/hsn-code-finder). For the rest of the layout, see our [GST bill format](https://billbabu.com/formats/gst-bill-format).

## Packing, loading and insurance on your bill

The same logic applies. Section 15(2)(c) names packing outright, and the Section 2(30) illustration includes insurance. Loading or forwarding charges you add on your own sales bill, for things you do before delivery, follow the goods in the same way. Confirm unusual cases, such as unloading at the buyer's site after delivery, with your CA.

## When a transporter bills you

If you hire a goods transport agency (GTA) and it gives you its own bill, that is a separate service bought by you, with its own GST rules; in some cases reverse charge applies. Your charge to the buyer is still covered by the rules above. See [reverse charge under GST](https://billbabu.com/blog/reverse-charge-mechanism-gst-rules-examples) and ask your CA about your transporter's bill.

## Freight and the e-way bill

Freight on your bill also counts for the e-way bill. [Rule 138](https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/rules/cgst_rules/active/chapter16/rule138_v1.00.html) (Explanation 2) defines the consignment value as the value worked out under Section 15 and declared on the invoice, including the GST charged. Freight that is part of the bill value is part of that figure. For limits and validity, see [e-way bill rules, limits and validity](https://billbabu.com/blog/eway-bill-rules-thresholds-distance-validity-2026), and for paperwork in the truck, [which invoice copy travels with the goods](https://billbabu.com/blog/original-duplicate-triplicate-invoice-gst).

## Worked example: Singh Tiles

_Sample data: the businesses and amounts are made up, and 18% is an example rate._

Singh Tiles in Ludhiana sells tiles worth ₹60,000 to a builder in Jalandhar. Both are in Punjab (state code 03), so the bill has CGST + SGST. Singh Tiles hires a tempo, delivers to the site, and charges ₹3,000 freight on the same bill.

| Line | Taxable value | CGST 9% | SGST 9% |
| --- | --- | --- | --- |
| Vitrified tiles | ₹60,000 | ₹5,400 | ₹5,400 |
| Freight to Jalandhar site | ₹3,000 | ₹270 | ₹270 |
| **Total** | **₹63,000** | **₹5,670** | **₹5,670** |

Invoice total: ₹74,340. The freight is taxed at the tiles' rate because it travels with them as one deal.

If the builder sends his own truck instead, the bill is ₹60,000 + ₹10,800 GST = ₹70,800, with no freight line. If the site were in another state, the tax would be IGST, and the place of supply follows the rules in our post on [bill to ship to](https://billbabu.com/blog/bill-to-ship-to-gst).

## Adding freight in BillBabu App

BillBabu App has no separate freight or "additional charges" field. What you can do:

- **Freight as its own line:** add an item line with a description such as "Freight to site", the code and GST rate your CA confirms, quantity 1 and the amount. The app works out the tax on that line like any other.
- **Freight inside the rate:** type a delivered rate per unit instead.
- **Delivery details:** fill in "Dispatched through" (By Road, Courier, Self Pickup and others), the terms of delivery (for example Ex-Works), the vehicle number and the e-way bill number. Use "Add Ship To (Consignee)" for a site address.
- **Pick the right PDF design:** Classic and Ledger print an HSN/SAC column and the Ship To block. The Minimal design prints no HSN/SAC codes, so avoid it for these bills.

The app doesn't apply the goods' rate to freight by itself and doesn't make e-way bills. Check the tax on the review step before you save. To check a GST amount, use the [GST calculator](https://billbabu.com/tools/gst-calculator).

## Frequently asked questions

### Is GST applicable on freight charges in an invoice?

Yes, when you charge freight on your own sales bill for delivering the goods. It is part of the value of the supply (Section 15(2)(c)).

### What GST rate applies to freight on a sales bill?

Usually the rate of the goods it delivers, because goods sent with transport form a composite supply with the goods as the principal supply (Sections 2(30) and 8). For bills with goods at more than one rate, ask your CA.

### Which HSN or SAC code goes on a freight line?

There is no single answer for every case. Ask your CA whether to use the goods' code or a service code, and use the same method on every bill.

### Can I show freight on the bill without GST?

Only in narrow pure-agent cases under Rule 33, where every condition is met. Otherwise, freight you charge on your sales bill carries GST.

### Are packing and forwarding charges treated the same way?

Generally yes. Section 15(2)(c) names packing, and charges for things you do before delivery are part of the value. Confirm unusual cases with your CA.

Related reading: [B2B invoice under GST](https://billbabu.com/blog/b2b-invoice-format-gst), [B2C invoice under GST](https://billbabu.com/blog/b2c-invoice-gst-b2cl-limit), [discounts on a GST invoice](https://billbabu.com/blog/discount-in-gst-invoice), and, if you've just registered, [GST रजिस्ट्रेशन के बाद क्या करें](https://billbabu.com/hi/gst-registration-ke-baad-kya-kare) in Hindi.

**Freight on the bill, tax that adds up.** In BillBabu App, add freight as its own line with its code and rate, fill in the vehicle and e-way bill numbers, and share the PDF. Start free, no card needed; unlimited bills need Pro (paid). [Search billbabu on Play Store](https://play.google.com/store/apps/details?id=com.billbabu.app).

_Rules checked on 27 October 2026._

This article is general information, not tax or legal advice. Rules change; check the official GST portal and your CA before acting. BillBabu App is a private app by Central Bharat Labs; it is not a government service.

Official sources: [CGST Act Section 2](https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/acts/2017_CGST_act/active/chapter1/section2_v1.00.html), [Section 8](https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/acts/2017_CGST_act/active/chapter3/section8_v1.00.html) and [Section 15](https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/acts/2017_CGST_act/active/chapter4/section15_v1.00.html); [CGST Rule 33](https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/rules/cgst_rules/active/chapter4/rule33_v1.00.html), [Rule 46](https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/rules/cgst_rules/active/chapter6/rule46_v1.00.html) and [Rule 138](https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/rules/cgst_rules/active/chapter16/rule138_v1.00.html) on CBIC.

## Related guides

- [E-Invoicing Rules & Turnover Threshold in 2026: Exemptions, IRN Generation, and Penalties](https://billbabu.com/blog/e-invoicing-threshold-rules-irn-generation-guide-2026): Detailed guide to GST e-invoicing threshold rules in 2026. Learn AATO limits, exempt sectors, IRN generation, QR code validation, and Rule 48(5) penalties.
- [Delivery Challan vs Tax Invoice: GST Rules, When to Issue, and Mandatory Format](https://billbabu.com/blog/delivery-challan-vs-tax-invoice-gst-rules): Delivery Challan vs Tax Invoice under GST: Learn Rule 55 rules, job work, goods on approval, e-way bill requirements, and mandatory formats for Indian trade.
- [Invoice vs Estimate vs Quotation vs Proforma Invoice: The Difference](https://billbabu.com/blog/invoice-vs-estimate-vs-quotation-differences): A quotation and an estimate are offers. A proforma invoice is a draft bill sent before the sale. A tax invoice is the real bill under GST. Here is when to use each, with one job followed from quote to final bill.

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