In the case of import of goods by Sea on FOB (Free on Board), the Ocean freight is paid by the importer directly to the foreign shipping line. The ocean freight amount is separately shown in the bill of entry. Under this situation,
1) On what value GST is to be paid under reverse charge by the importer?
2) what is the percentage of GST
3) Whether to pay IGST or CGST + SGST? If the said freight is initially paid by the CHA or the freight forwarder to the foreign shipping line and then recovered from the importer, whether importer is liable to pay GST under reverse charge?
GST on Ocean Freight: IGST at 5% Applies; Debate on Enforcement of Mohit Minerals Judgment Continues The forum discusses the applicability of GST on ocean freight for goods imported by sea on an FOB basis. The main query involves the GST rate, whether IGST or CGST + SGST applies, and the liability under reverse charge when freight is initially paid by a CHA or freight forwarder. Responses indicate that IGST at 5% is payable on the actual freight amount. However, a Gujarat High Court ruling in the Mohit Minerals case deemed the levy of tax on ocean freight as ultra vires, leading to a debate on the applicability and enforcement of this judgment across different jurisdictions. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
