Rcm on ocean freight charges and transportation.

sandeep (Accountant) (111 Points)

17 August 2019  

We are registered dealer under GST and Outward supply is exempted .We have exported the agricultural product like banana and potato to Dubai from JNPT, Mumbai. our farms are located in Gujarat. The CHA provide transportation from Gujarat to Mumbai and then raise the separate reimbursement Invoice as follows: Transportation charges from Mumbai to Ahmedabad and back to Mumbai- 90000/-

Ocean Freight Charges- 57377.70 ( $807*71.57)

Export Insurance Policy Charges-700

Detention Charges-7000

Total=155077.70

No GST charged by them. They issued another invoice stating CMC charges, Custom Passing Charges, C & F Agency Charges and charged GST. Please let me know the applicability of RCM if any on Ocean freight charges and Transportation charges. If RCM applicable then company will bear huge loss on account of GST since we are not claiming ITC on inward supply , we treat it as an expenses. Kindly share your valuable views.