GST under reverse charge on ocean freight

[Kaustubh Karandikar]

In view of the Notification No. 11 and 13/2023 issued regarding GST on ocean freight, does it mean that even if contract is FOB and if the Shipping Line is from outside India, GST under reverse charge is not payable? And if payable, under which serial number of the reverse charge notification the same will be payable?

AI Summary

GST Reverse Charge on Ocean Freight: FOB Contracts with Foreign Shipping Lines Taxable Under RCM Serial Number 1 A forum discussion addressed the applicability of GST under reverse charge on ocean freight, particularly when contracts are FOB and the shipping line is from outside India. One participant noted that it is taxable under RCM Serial Number 1. Another referenced a Supreme Court appeal concerning a Gujarat High Court decision, which held that certain notifications imposing IGST on importers were ultra vires, suggesting IGST is not payable. A third contributor confirmed that for FOB contracts, RCM Serial Number 1 applies if the service recipient is in India and the provider is outside India.