reverse charge on ocean freight

[Kaustubh Karandikar]

XYZ (India) paid an amount to a PQR Logistics(India) towards freight charges for transporting the goods from U.K. to Bangladesh by Ship. Is XYZ required to pay GST on it under reverse charge being paid towards ocean freight? In my view, no RCM since the Services are not supplied by a person located in non- taxable territory. Views of the experts please.

AI Summary

XYZ Not Liable for GST on Ocean Freight Under RCM; Both Parties Based in India A discussion on a forum addresses whether XYZ, an Indian company, must pay Goods and Services Tax (GST) under the reverse charge mechanism (RCM) for ocean freight paid to PQR Logistics, also based in India, for transporting goods from the UK to Bangladesh. Participants largely agree that RCM does not apply since the service provider and recipient are both in India, and there is no applicable exemption. Some contributors emphasize avoiding uncertain language in professional drafting, and one references a CBIC notification regarding exemptions for ocean freight on exports.