IGST Exemption on Export freight after 01.10.2022

[Raghunandhaanan rvi]

Sirs,

Exemption from IGST on export freight for transportation of goods by vessel or aircraft from customs station of clearance in India to a place outside India is available until 30.09.2022 vide Notn. No. 07/2021 - IGST (Rate). Parent Notification is 09/2017 IGST Rate and not 02/2018 amended from time to time.

My question is there any notification issued by the GST council extending the exemption for a further period beyond 30.09.2022?

Thanks

[KASTURI SETHI]

The situation is fluid. We can expect notification at any time. Earlier also there was a delay.

[Raghunandhaanan rvi]

Okay Sir.

Well Noted

Thank you

[KASTURI SETHI]

No further extension for exemption has been granted. So w.e.f. 1.10.22, GST @5% is applicable on export ocean freight and related freight components.

[Shilpi Jain]

Transport by aircraft 18%.

[Shilpi Jain]

Where an exempt supply has become taxable, there is eligibility of credit on inputs and capital goods as per section 18(1)(d)

(d) where an exempt supply of goods or services or both by a registered person becomes a taxable supply, such person shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock relatable to such exempt supply and on capital goods exclusively used for such exempt supply on the day immediately preceding the date from which such supply becomes taxable:

[Raghunandhaanan rvi]

Shri. Kasturi Sir, and Smt. Shilpi Jain Mam

Thank you so much for your valuable information.

[Eric Wynne]

In continuation of the GST on export freight implemented from 1st Oct 2022:

I wish to have clarity if GST on export freight is to billed to overseas agent/customer.

[Raghunandhaanan rvi]

Dear Sir

In our case Bill is on Indian Shipper

Thanka

[Shilpi Jain]

You can bill the GST to the overseas customer and this is not a matter governed by the Indian GST laws. It is based on the terms of the contract between you and the customer, whether you will be able to recover from the customer or not.

[Abhishek Chauhan]

Hello Ma'am

we works as an agent to provide services through vessel or aircraft to the customers

can i claim gst input of ocean freight charges @ 5% that is charged by shipper on us

[Raveendran PM]

The real issue is that Custom House Agents (CHA) are not allowing to charge on IGST on such freight in the Shipping Bill, which leads the short refund of IGST to that extent. Is tthere any recourse ?

AI Summary

IGST on export freight now taxable; input tax credit available for erstwhile exempt supplies and billing is contractual.
IGST on export freight ceased to be exempt after the exemption period, rendering ocean and air freight taxable at their respective GST rates. When an exempt supply becomes taxable, the supplier may claim input tax credit for inputs and capital goods attributable to that supply as of the day before the change. Billing GST to an overseas customer is governed by the parties' contract. Practical problems at export clearance, including refusal by some Customs agents to levy IGST on shipping bills, can reduce refunds and require procedural recourse.