TAKE CREDIT OF IGST PAID ON OCEAN FREIGHT UNDER CIF BASIS

[BHAKTIKANT BHATT]

SIR,

WHETHER WE TAKE IGST CREDIT ON 5% IGST PAID ON OCEAN FREIGHT PAID ON CIF PURCHASE VIDE NOTIFICATION NO 10/2017.EXCISE AUDITOR DENY TO TAKE IGST CREDIT WHICH WE PAID ON OCEAN FREIGHT.

KINDLY GIVE US YOUR VALUABLE SUGGESTION.

Thanks

AI Summary

Clarification on IGST Credit Eligibility for Ocean Freight under Notification Nos. 8/2017 and 10/2017; Reverse Charge Rules Apply. A user inquired about the eligibility to claim IGST credit on 5% IGST paid on ocean freight for CIF purchases, referencing Notification No. 10/2017. An auditor denied the credit claim. A respondent clarified that under Notification No. 8/2017, IGST is chargeable at 5% for transporting goods by vessel from outside India to an Indian customs station, with specific conditions on input tax credit. If the shipping company is in a non-taxable territory, IGST is payable under reverse charge, allowing credit. The user was advised to explain this to the auditor or seek departmental adjudication if necessary.