TMI BlogGST on Ocean FreightX X X X Extracts X X X X X X X X Extracts X X X X ..... 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 fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eight 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? - Reply By CAVenkataprasad Pasupuleti - The Reply = Importer is liable to pay IGST @18% under reverse charge on the actual value of frieght paid to the foreign shipping line. - Reply By Ganeshan Kalyani - The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply = In case of FOB import the freight is known to the importer. IGST @5% is payable on actual freight amount. And, in case of CIF, 10% of CIF is assumed as the freight element and 5% on that part is required to be paid as IGST. - Reply By CAVenkataprasad Pasupuleti - The Reply = Yes. Rate is 5%. - Reply By Rachit Agarwal - The Reply = Ganeshanji. Please note that the Import on CIF basi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s there is no liable to pay tax under reverse charge. Gujarat High Court in case of Mohit Minerals Ltd. = 2020 (1) TMI 974 - GUJARAT HIGH COURT has already held such Corigendum to Notification as ultra vires which provide for the levy of tax on deeming fiction. - Reply By PAWAN KUMAR - The Reply = Gst is payable @5% on freight paid as fob. Gujrat high court and also Rajasthan high court s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tayed the levy but still taxpayers are paying under rcm and taking it. - Reply By Ganeshan Kalyani - The Reply = It is better to pay IGST and claim input tax credit. As far as ITC is available the better option is to pay and claim ITC. No working capital impact as the claim is available in the same month. Also, Mohit Mineral case law may not be considered by the other State authority. If assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did not paid tax then interest will be applicable. - Reply By Somil Bhansali - The Reply = Dear All, Request you all to see this video which explains the recent ruling given in case of Mohit Minerals Pvt Ltd vs. Union of India [ 2020 (1) TMI 974 - GUJARAT HIGH COURT ] . - Reply By sunil bhageria - The Reply = On of the panelist Mr. Pawan Kumar has referred that Rajasthan hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh court has also stayed the levy of RCM on Ocean freight in case of CIF. Request to him please provide the decision or any reference of the same from where we can get the same. - Reply By YAGAY andSUN - The Reply = In our view, it is welcome judgment as Gujarat High Court clears the mist of double taxation on the Ocean Freight transaction (i.e. levying of Customs Duties including cess and IGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and also treating it as service and levying IGST again). The taxability dispute on ocean freight has been finally decided by the Gujarat High Court to hold that taxing the ocean freight is ultra vires and leads to double taxation. Further, it would be also interesting to see, how this matter will be adjudicated by Delhi High Court and Mumbai High Court, as petitions are also pending before the H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cs in Delhi and Mumbai. - GST on Ocean Freight - Query Started By: - Kaustubh Karandikar Dated:- 18-3-2020 Goods and Services Tax - GST - Got 9 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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