GST invoice format for a freight forwarder (logistics agent)
A freight forwarder arranges sea, air and road shipments for exporters and importers and earns forwarding charges, documentation fees and margins, mostly taxed at 18% under SAC 996713 for clearing and forwarding. The invoice must separate the forwarder's own charges from freight and port charges recovered as a pure agent, show the bill of lading or airway bill number, container numbers, port of loading and discharge, shipping bill or bill of entry reference, and the exchange rate used for foreign currency freight.
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Freight forwarding and documentation charges, export shipment (B/L as per annexure)
996713
1 SHIPMENT
6,500.00
6,500.00
18%
Inland haulage coordination, factory to JNPT
996713
2 CONTAINER
2,500.00
5,000.00
18%
Container stuffing supervision
996719
2 CONTAINER
1,800.00
3,600.00
18%
Courier of original documents to consignee
996812
1 SHIPMENT
2,200.00
2,200.00
18%
Taxable value
₹17,300.00
GST (CGST + SGST, or IGST if inter-state)
₹3,114.00
Invoice total
₹20,414.00
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a freight forwarder invoice needs
Bill of lading or airway bill number
Every forwarding invoice relates to a shipment document. The B/L or AWB number lets the shipper match the bill to the cargo and to the carrier's own charges.
Container numbers and size
Ocean freight is charged per 20 ft or 40 ft container. Listing container numbers and sizes explains freight, terminal handling and detention charges.
Port of loading and discharge
Place of supply for transport of goods can depend on destination. Showing both ports also tells the client which leg each charge relates to.
Shipping bill or bill of entry number
Customs documents tie the shipment to export or import. Clients need the reference to claim export benefits and import credits.
Exchange rate for foreign currency charges
Freight is often quoted in US dollars. State the rate used for conversion so the rupee taxable value can be verified.
Pure agent reimbursements block
Carrier freight, port charges and customs duties paid on the client's behalf can be shown below the taxable section with receipt references, so they are not taxed again as the forwarder's income.
Standard GST invoice fields
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
✓Supplier name, address and GSTIN
✓Consecutive invoice number (max 16 characters, unique for the year)
A forwarder who buys space from a shipping line or airline in its own name and resells it to shippers at a price of its own choice acts as a principal for transport, not as a pure agent. In that case the full amount charged is its consideration, and the rules for transport of goods by vessel or aircraft apply. A forwarder who books freight in the shipper's name and recovers it at actual cost acts as an agent and can use Rule 33 for those amounts. The contract and the invoice wording should match the real arrangement.
Ocean and air freight for exports and imports
Transport of goods by air or sea has separate entries and exemptions, and some exemptions for export freight have been extended or changed over the years by notifications and court rulings. Import ocean freight in CIF contracts was the subject of a Supreme Court decision that ended reverse charge on it for importers. Because this area has changed often, check the current notification for the specific leg before deciding whether a freight line on your invoice is taxable, exempt or zero-rated.
Intermediary place of supply change
The 56th GST Council recommended that the place of supply for intermediary services be determined by the default rule, which is the location of the recipient. A forwarder in India acting for a foreign principal on commission may then be able to treat the commission as export of services if the other conditions are met. Keep agency agreements with overseas partners and bill them in foreign currency to support such treatment.
Multimodal transport rate
For multimodal transport of goods within India, the Council moved the rate to 5% with restricted credit where no leg is by air, with 18% as the alternative. A forwarder that takes responsibility for the entire door-to-door movement as a multimodal transport operator must check whether its contract meets this definition before applying 5%; ordinary forwarding commission stays at 18%.
Detention, demurrage and late charges
Container detention and port demurrage arise when cargo is not cleared or returned in time. If the shipping line or port bills the shipper directly, the forwarder only passes the invoice on. If it bills the forwarder, the forwarder recovers the cost as part of its own supply with GST. The forwarder's invoice should name the container, the free days allowed and the number of days charged, because clients usually contest these amounts and the documentation decides the outcome.
Common billing mistakes
✕Charging 18% on the full ocean freight when the forwarder was only a pure agent for that freight.
✕Calling freight a reimbursement while adding a margin, which removes the pure agent protection.
✕Billing a foreign principal with IGST on commission without checking the revised intermediary place of supply rule.
✕Converting dollar freight at different exchange rates on the invoice and in the books.
Freight Forwarder GST invoice: FAQ
What GST rate applies to freight forwarding charges?
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Clearing and forwarding services, including documentation and coordination charges of a freight forwarder, are taxed at 18%. The SAC code is 996713 according to the explanatory notes to the scheme of classification of services.
Is GST charged on ocean freight recovered from a client?
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It depends on whether the forwarder acts as principal or pure agent and which leg is involved. Freight recovered as a pure agent at actual cost can be excluded from the forwarder's value. Freight resold as principal is the forwarder's own supply.
Can a forwarder issue an export invoice under LUT?
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Only where its own service is an export of services, for example commission billed to a foreign principal meeting the export conditions. Forwarding charges billed to an Indian exporter are domestic supplies even though the cargo is exported.
Which SAC covers stuffing and cargo handling?
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Other cargo and baggage handling services fall under SAC 996719, while customs house agent services are 996712 and clearing and forwarding are 996713.