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?

AI Summary

Debate on GST for Ocean Freight in FOB Imports: Importer vs. CHA Responsibility; Gujarat High Court Stay on IGST A discussion forum addressed a query regarding the Goods and Services Tax (GST) on ocean freight for imports under FOB contracts. The main issue was whether GST should be paid by the importer under reverse charge or if the Customs House Agent (CHA) should include it in their invoice. Responses included suggestions for the CHA to claim reimbursement without markup and noted a Gujarat High Court stay on IGST for ocean freight. The conversation included requests for further information and sharing of contact details for additional guidance.