If purchase is made for goods and the invoice consists of following terms
Goods 20000
Transport cost 2000
GST Rate on goods 18%,
Then whether the 18% is applicable on goods or otherwise on both goods and transport cost.
How will it will be taxed
Yes the rate of tax will be 18% both on goods and transportation charges.
It is a mixed supply and principal supply is of goods. So the rate of tax applicable on goods will be applied on transportation cost also.
Transportation cost is nothing but expense incurred to make supply possible and so it is to be considered as part of valuation.
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