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GST on markup in ocean freight

11 October 2018

Assessee is in business of ocean freight, when he booked consignment on behalf of clients for exports, he pay ocean freight from his pocket and charge ocean freight from client with some Mark up...so my question is as per notification issued on 25.01.2018 ocean freight is exempt so will my input service and out put service is exempt or do i need to pay gst on my markup?

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 11 October 2018

As per Notification 2/2018 dt. 25.1.18 Further amended by Notification 14/2018 July 2018 The Transportation of goods from custom clearance to outside india is exempted under sunset clause to 30/09/2019

Now in my view if you are providing bill for exempted services to your client will be exempted only , no GST is applicable .

Lets take a example of Books which is exenpted in GST if distributor Bill it reatiler by keeping its margin its does not get taxable means it still sold out exempted

But still await for reply from other expert also in this regard