GST on Export Ocean Freight

[Guest]

Sir,

Please clarify we should get the proof of ocean freight from liner or a mere claim from CHA (who is a registered dealer under GST) is enough to claim GST exemption.

In my case, a local CHA from Chennai provided an invoice wherein, he mentioned the Ocean Freight Charges USD9000*72=6,48,000 and shown under GST exemption column and other handling charges, etc shown as GST attract column. There is no proof he has submitted for ocean freight of USD 9000 (which is paying to liner). Of course, liners are not registered generally under GST.

please clarify.

Regards,

Sekhar

[sarojni singh]

The rate of GST needs to be discharged on the freight amount is 5% in accordance with notification 8/2017 – IGST (Rate). The value of ocean freight would be deemed as 10% of the CIF Value, when the freight amount not known.

[YAGAY andSUN]

Gujarat and Calcutta High Court have already declared that Charging of GST on Ocean Freight is unconstitutional.

[KASTURI SETHI]

Dear Sir,

Will you please give citation ? Thanks a lot.

AI Summary

GST on ocean freight: applicability and proof issues affect exemption claims and valuation when freight is unknown. Application of GST to export ocean freight raises whether a Customs House Agent's invoice suffices to claim exemption when liner charges are not shown; guidance cited applies the IGST rate to freight and treats freight as a percentage of CIF where actual freight is unknown; high court decisions contesting the constitutionality of charging GST on ocean freight were also mentioned.