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

[KASTURI SETHI]

IGST @5% is applicable.. Procedure for claiming refund is laid down under Rule 89 (1) of CGST Rules, 2017. Also see Board's Flyer No.35 dated 1.1.18.

AI Summary

IGST on ocean freight applies to export services; refund remedies exist under CGST refund procedures. Ocean freight billed locally for carriage to destinations outside India is subject to IGST, and refund of tax paid on such export-related services must be claimed under the refund provisions of the CGST rules and accompanying administrative guidance.