In our invoices, we add shipping charges to the invoice. In ZohoBooks, no GST is being applied to the Shipping cost.

for eg. If product subtotal is INR 1000 with GST 12% and shipping is INR 200, GST is being applied only to INR 1000 and not to INR 200.

As per my understanding, govt notification states that GST needs to be applied to transaction value and not the subtotal value. And I suppose shipping is part of transaction value and GST should be charged on that as well. Please correct me if I am wrong here.

If it's correct, Is Zoho invoice, not GST compliant on this part yet? If it is, please suggest the correct approach. If not, please suggest a workaround as I need to create an invoice from today onwards.

Looking to hear back soon.

Thanks,

Vaibhav