ocean freight paid rcm applicability

[satbir singhwahi]

EXPORTING GARMENTS FIRM , PAYING OCEAN FREIGHT ON IMPORTS AND EXPORTS. PLS GUIDE THE APPLICABILITY OF RCM FOR JULY 2017 TO TILL DATE.

AI Summary

Reverse Charge Mechanism Applies to Ocean Freight Payments for Imports/Exports Since July 2017 Under IGST Act Section 13(9). An exporting garments firm inquires about the applicability of Reverse Charge Mechanism (RCM) on ocean freight payments for imports and exports from July 2017 onwards. The firm seeks clarification on whether RCM applies to ocean freight paid for importing cloth and exporting garments on a CIF basis. Responses indicate that RCM is applicable, referencing Section 13(9) of the IGST Act, 2017, and relevant notifications, confirming the applicability of RCM on such transactions.