Retention on ITC for ocean freight

[Mohammadhanif Pirjade]

What is ocean freight and how ITC to reverse on it?

[KASTURI SETHI]

Pl. elaborate your problem specifically.

[Madhusudan Mishra]

E/No. 1 of N/N. 10/2017 - IT(R) to be read with S.2(62) and S.16. ITC would be available.

[DR.MARIAPPAN GOVINDARAJAN]

It is a method of transporting large quantities of goods, usually packed in shipping containers, by sea.

[KASTURI SETHI]

996521 Coastal and transoceanic (overseas) water transport services of goods by refrigerator vessels, tankers, bulk cargo vessels, container ships etc.

“Ocean freight is the term used for transporting goods internationally through ocean. It is an integral part of cross-border trade which allows movement of large quantity of goods through the open ocean. Under ocean freight, the services are drawn from third parties called freight forwarder who starts with taking delivery of the goods from the place of exporter (seller), packing, loading, transporting, clearing at Customs or State borders, unloading at other side, transporting to its destination and giving delivery to the customer at the final destination.

AI Summary

Understanding Ocean Freight and Input Tax Credit Reversal Under GST: Key Insights and Notifications A discussion on a forum addresses the topic of ocean freight and the reversal of Input Tax Credit (ITC) under the Goods and Services Tax (GST) framework. A user inquires about the nature of ocean freight and its implications for ITC reversal. Responses clarify that ocean freight involves transporting large quantities of goods via sea, typically using shipping containers. It is a crucial component of international trade, managed by freight forwarders who handle logistics from the exporter to the final destination. One reply references specific GST notifications and sections, indicating that ITC may be available for ocean freight.