Ocean Freight

[Kaustubh Karandikar]

On imports, when contract is FOB, Ocean Freight is separately shown in Bill of Entry on which XYZ is paying import duty. CHA is charging this ocean freight to XYZ in his bill over and above his service charges and charging GST on it. Is it correct or XYZ is compulsorily required to pay GST under reverse charge on ocean freight and the CHA should show this amount in his invoice separately under non – taxable value?

[Mahadev R]

Lot of confusion in case of ocean freight levy. In this case, possible solution could be to request the CHA to claim the reimbursement at actuals without markup. Levy on import can be by importer as importer is liable for GST on import of services.

[KASTURI SETHI]

Dear Sir,

It is a case of double taxation first as goods and thereafter as service (import). It is as per laws.

[KASTURI SETHI]

Gujarat High Court stays levy of IGST on ocean freight. Today's news.

[Kaustubh Karandikar]

Shri Kasturi Ji

Thanks for the update. The relevant judgment is available? Your guidance on my queries are also very useful.

[KASTURI SETHI]

Dear Sir, I can send you through WhatsApp. Your whatApp mobile.pl.

[Kaustubh Karandikar]

Shri Kasturi ji

My Cell: 9869004521. email ID: [email protected]

Thanks in advance for the kind help.

AI Summary

Ocean freight GST: whether importer pays under reverse charge or faces double taxation after customs levy.
The document questions GST treatment on ocean freight for FOB imports where the CHA bills freight separately with GST. It records advice that the CHA should reimburse freight at actuals without markup and that the importer may be liable to pay GST on import of services under the reverse charge mechanism, while others flag potential double taxation and note a judicial stay on IGST levy on ocean freight.