GST on ocean freight for import purchase under RCM

[Pradeep Sarangi]

Dear Expert,

is gst applicable on ocean freight for import purchase under RCM ? What is the tax rate & how to calculate the same ?

Regards

Pradeep

AI Summary

GST on Ocean Freight: RCM Applies for FOB Imports with Foreign Shipper, 5% Tax Rate Confirmed. CIF Exempt. A discussion on the applicability of Goods and Services Tax (GST) on ocean freight for import purchases under the Reverse Charge Mechanism (RCM) was initiated by an individual. The query referenced a Supreme Court judgment in the case of Union vs. Mohit Minerals. Responses clarified that if goods are imported on a Cost, Insurance, and Freight (CIF) basis, RCM does not apply, while for Free on Board (FOB) basis, GST must be discharged under RCM if the shipper is a foreign entity not registered in India. The applicable tax rate is 5% on the actual freight amount.