Ocean freight in case of export

[YATISHKUMAR AGARWAL]

Dear sir

Please advice

Case : we export goods with payment of igst and contract is for CIF basis. My query is as per following

1. We charge shipping charge in invoice whether is it composite supply ?

2. Shipping charges are subjected to igst or not

3.If shipping charges are subject to igst then whether it is export of service or not (as principal supply is cover under export of goods )

4. While filing return shipping charges should be shown as supply of service or not

5. IGSt paid on shipping charges is refundable or not

6.After 25.01.2018 whether is it exempt

AI Summary

IGST on shipping charges treated as composite supply for CIF exports, refundable though temporarily exempt by notification.
Shipping charges under CIF exports are a composite supply tied to the principal export of goods; if the exporter located in India bears freight, the sea transportation service to a place outside India is treated as an inter state supply attracting IGST, must be shown as a supply of service in returns, and IGST paid on such freight is refundable as an input service, subject to a temporary nil rate exemption afforded by specified rate notifications for a limited period.