Sir
Recently in my final audit of Excise and Service Tax for pre GST era, I was taxed for Ocean Freight for the period 23rd April 2017 to 30th Juna 2017.
I was aware of notification of 1/2017 & 2/2017 of Service Tax Act but was not aware of notification no 16/2017 which transfers the liability on the Importer.
Not GST is also payable on it on RCM.
I just want to ask that don't you think that this is double taxation.
When we have pade custom duty and Excise/GST on CIF value of our goods imported than why shall we pay again Service Tax/ GST on F part of this CIF value.
Can you please explain the matter.
Debate Over Double Taxation Concerns on Ocean Freight Pre-GST: Reverse Charge Mechanism and Input Tax Credits Discussed. An individual raised concerns about being taxed for ocean freight during a final audit of Excise and Service Tax for the pre-GST period, questioning whether this constitutes double taxation. The discussion revolves around the applicability of service tax and GST on ocean freight, specifically under reverse charge mechanism (RCM). Participants debated whether paying GST on freight after customs duty on the CIF value amounts to double taxation. Some argue it is not double taxation as taxes are levied under different acts, while others highlight ongoing legal challenges. The conversation also touched on the potential for claiming input tax credits and recent notifications affecting GST rates on ocean freight. (AI Summary)
TaxTMI 
TaxTMI 
