TaxTMI 
TaxTMI 
In case of GST under reverse charge on ocean freight, for FOB contracts, importer to pay IGST @ 5% as per Sr. No.9(ii) of Notification. No. 8/2017-Integrated Tax (Rate) on freight charges paid to the foreign shipping line. In case of CIF Contracts, importer to pay IGST @ 5% as per Sr. No.9(ii) of Notification. No. 8/2017-Integrated Tax (Rate) on 10% of the CIF value as per Bill of Entry (Without considering the Gujarat High Court decision). Is my understanding correct?
GST on Ocean Freight
12 Jun 2020 
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Reverse charge on ocean freight: importer liable to pay IGST and may claim input credit subject to conditions.
Reverse charge on ocean freight makes the importer liable to pay IGST on freight charged by foreign shipping lines: under FOB the IGST is on the freight invoice to the carrier, while under CIF the IGST is levied on a stated portion of the CIF value in the bill of entry. Importers commonly pay IGST and later claim input credit, but statutory time limits and the mechanism of payment affect eligibility to claim that credit; notification-based exemptions for international freight can suspend the reverse charge for specified periods. (AI Summary)
Reverse charge on ocean freight makes the importer liable to pay IGST on freight charged by foreign shipping lines: under FOB the IGST is on the freight invoice to the carrier, while under CIF the IGST is levied on a stated portion of the CIF value in the bill of entry. Importers commonly pay IGST and later claim input credit, but statutory time limits and the mechanism of payment affect eligibility to claim that credit; notification-based exemptions for international freight can suspend the reverse charge for specified periods. (AI Summary)