Freight in GST – Inclusive & Exclusive Calculation

YouTube: How to Manage GST Calculation on Freight Charges for GSTR-1?

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.

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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.

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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.

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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.