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

Reverse charge on ocean freight applies where the importer engages a foreign shipper; CIF contracts exclude RCM liability.
GST on ocean freight is determined by the contract basis and party engaging the carrier: no RCM liability for the importer under CIF contracts, while RCM applies where the importer engages a foreign shipper or the shipper is unregistered in India; GST under RCM is to be calculated on the actual freight amount and discharged by the importer.