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2021 (3) TMI 1289 - AAAR - GSTLevy of GST - Freight on Reverse Charge Mechanism - GST has been paid on the freight in the case of indigenous supplies - GST has been paid on the ocean freight in the case of imports on the CIF value and the value of the ocean freight is included in the value of the imported goods - revenue neutrality - HELD THAT:- In terms of the Notification No. 10/2017- Integrated Tax (Rate) dated 28.06.2017 (as amended), in the case of import of goods on CIF basis, the appellant is liable to pay GST on the component of Ocean freight paid by the foreign supplier to the shipping company. The service of transportation of goods is taxable both in case of imports as well as exports for domestic shipping line and for import for foreign shipping line. Since exports by domestic shipping line are already zero rated, the ITC will not be available to Indian shipping lines if the service of inward transportation of goods is not made taxable in India. Accordingly, Tax under RCM gives a level playing field to the domestic shipping lines. Moreover the goods are transported from a place outside India up-to the customs station in India for the importer and therefore, he is directly or indirectly the recipient of service - the CIF value is adopted under Customs Valuation Rules for the purpose of calculation of Customs duty on 'Goods' whereas the GST is being demanded, under reverse charge mechanism, only for the service portion involved in the transaction. When the GST has been paid on the freight in the case of indigenous supplies, whether the supplier is required to pay again GST on the freight under RCM? - HELD THAT:- The Notification No. 13/2017- CT (Rate) dated 28.06.2017 (as amended) is squarely applicable on the Appellant and they are liable to pay the GST on the freight paid, under the reverse charge mechanism. As regard to the double taxation we are in unison with the Advance Ruling Authority that this is a revenue neutral exercise, having no additional financial impact on the appellant and it is outside the purview of the Advance Ruling Authority.
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