GST on Ocean Freight

This query is : Resolved

Kaustubh Ram Karandikar (Querist)
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18 March 2020 In the case of import of goods by Sea on FOB (Free on Board), the Ocean freight is paid by the importer directly to the foreign shipping line. The ocean freight amount is separately shown in the bill of entry. Under this situation, 1) On what value GST is to be paid under reverse charge by the importer? 2) what is the percentage of GST 3) Whether to pay IGST or CGST + SGST? If the said freight is initially paid by the CHA or the freight forwarder to the foreign shipping line and then recovered from the importer, whether importer is liable to pay GST under reverse charge?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 March 2020 1 On freight value importer has to pay reverse charge.
2 5% GST payable.
3 IGST payable.
4 Yes under such circumstances importer is liable to pay RCM.