Reverse charge under GST on services

[Nihal Shaikh]

Is services by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India. In this service Reverse gst is applicable? pls explain

AI Summary

Reverse charge under GST applies to transport of goods by vessel to India, per Notification No. 10/2017. A query was raised regarding the applicability of reverse charge under GST for services involving the transportation of goods by vessel from outside India to an Indian customs station. The consensus among the respondents is that reverse charge is applicable. This is supported by Notification No. 10/2017-Integrated Tax (Rate), which mandates that the recipient of such services must pay the integrated tax. Furthermore, if the freight is known, the GST rate is 5%; if not, the taxable value is 10% of the CIF value of goods. Input Tax Credit is available if the finished product is taxable.