# Freight in GST – Inclusive & Exclusive Calculation
**YouTube:** [How to Manage GST Calculation on Freight Charges for GSTR-1?](https://www.youtube.com/watch?v=HxPgslwwW5M\&t=5s)
## How to Manage GST Calculation on Freight Charges for GSTR-1?
In this tutorial, we will explain how to manage **GST calculation on freight charges** while generating **GSTR-1 in Logic ERP**.\
We’ll demonstrate both scenarios — **freight included in GST** and **freight excluded from GST**.
***
### **Scenario 1: Freight Included in GST Calculation**
#### **Generate a Sales Bill**
* Begin by creating a new sales bill.
* Set **₹100** as the *freight charge*.
#### **Verify Freight Placement**
* In the **Other Details → View Total** section, check the placement of the freight field.
#### **Observe Tax Calculation**
* If freight appears **above the tax fields**, it means **GST will be calculated on both the gross amount and freight charges**.
* In this setup, both **Tax 1** and **Tax 3** are calculated as **₹27.50** each.
* You can press **F2** to view the **Account-wise Summary** and confirm that freight is included in the GST base.
#### **Set the Calculation Sequence**
* In the **Calculation Mode**, count the number of fields up to **Tax 2**.
* Example: There are 7 fields up to Tax 2.
* Set the **Position Number** for *Tax 1* and *Tax 3* as **7** to maintain the correct calculation order.
> **Note:** Changes made in the Sales Bill screen apply only to that particular bill.\
> To apply the same configuration across all bills in the series, go to **Sale Voucher Configuration** and repeat the same setup.
#### **Verify in GSTR-1**
* Save the bill and generate **GSTR-1** for the relevant period.
* The **CGST** and **SGST** amounts will now include freight charges in their taxable value.
***
#### **Scenario 2: Freight Excluded from GST Calculation**
* **Modify the Same Sales Bill**
* Open the previously created bill.
* Click on **Configuration → Calculation Mode**.
* **Reposition Freight Field**
* Move the **Freight** field **below** the tax fields.
* **Adjust Field Sequence**
* Count the number of fields up to **Tax 2**.
* Example: There are 6 fields.
* Set the **Position Number** for *Tax 1* and *Tax 3* as **6**.
* **Verify Changes**
* In the **View Total** section, you’ll now see that **freight appears below the tax fields**.
* This ensures that **GST is not applied on freight**.
* Both **Tax 1** and **Tax 3** are now calculated as **₹25 each**, while freight is calculated separately and added to the final bill amount.
* **Check GSTR-1 Output**
* Save the bill and generate **GSTR-1** again.
* You’ll now see that **CGST and SGST amounts exclude freight charges**.
***
### **Result**
By adjusting the **freight field position** in the calculation mode, you can control whether **GST is applied to freight charges** or **excluded** — ensuring correct tax computation and compliance in GSTR-1.
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