GST ON OCEAN FREIGHT SERVICES -EXPORT SERVICE

[Ashok Gandhi]

DEAR SIR,

I AM AGENT IN MUMBAI WHO MANAGE OCEAN TRANSPORTATION TO OUTSIDE INDIA. NOW MY CLIENT IS INSISTING TO DO TOTAL FREIGHT BILL IN MY NAME. WHAT IS GST IMPLICATION IF I BILLED LOCALLY FROM MY CLIENT FOR FOREIGN OCEAN TRANSPORTATION.

EXP.: AT PRESENT I AM MANAGING ABC'S OCEAN TRANSPORTATION DIRECTLY FROM SHIP OWNER WHO BASED OUTSIDE INDIA FOR TRANSFERRING GOODS FROM INDIA TO OUTSIDE INDIA. FOR THAT I AM CHARGING COMMISSION.

NOW ABC WILL NOT DO BILLING WITH SHIP OWNER WHO BASED OUTSIDE INDIA BUT THEY WILL DO BILLING WITH MY CO. AND I HAVE TO BILLED TO SHIP OWNER WHO BASED OUTSIDE INDIA.

NOW IN THAT SITUATION ON OCEAN TRANSPORTATION FOR OUTSIDE INDIA WHETHER I HAVE TO CHARGE GST ? AND IF YES HOW MUCH ? AND HOW TO TAKE REFUND FOR THE SAME FOR EXPORT SERVICE?

THANKS IN ADVANCE

AI Summary

Agent Queries GST on Local Billing for Foreign Ocean Freight; IGST at 5% Applicable, Refund via Rule 89(1) CGST Rules. An agent in Mumbai managing ocean transportation for clients is questioning the GST implications when billing locally for foreign ocean transportation. The client insists on billing the total freight in the agent's name, changing the billing process from directly with the ship owner outside India to the agent's company. The agent seeks clarity on whether GST applies and the applicable rate. A response indicates that Integrated GST (IGST) at 5% is applicable, and the procedure for claiming a refund is outlined in Rule 89(1) of the CGST Rules, 2017.