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GST under RCM on Ocean Freight

Kaustubh Ram Karandikar (Corporate Consultant- Central Excise & Service Tax) (519 Points)

12 June 2020

In case of GST under reverse charge on ocean freight, for FOB contracts, importer to pay IGST @ 5% as per Sr. No.9(ii) of Notification. No. 8/2017-Integrated Tax (Rate) on freight charges paid to the foreign shipping line. In case of CIF Contracts, importer to pay IGST @ 5% as per Sr. No.9(ii) of Notification. No. 8/2017-Integrated Tax (Rate) on 10% of the CIF value as per Bill of Entry (Without considering the Gujarat High Court decision). Is my understanding correct sir?

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2 Replies

Hemal Makwana (Designation) (771 Points)
Replied 12 June 2020

Gujarat High Court decision in case of Mohit Minerals can be referred. In my view No GST payable under RCM in case of CIF contracts due to issue of double taxation whereas GST may be payable under RCM in case of FOB contracts if shipping line is located outside India.