TaxTMI 
TaxTMI 
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?
Ocean Freight
14 May 2019 
6 Replies 
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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. (AI Summary)
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. (AI Summary)