Input tax credit eligible on ocean frieght paid to shipping agency

[gunda ashok kumar]

Sir,

Input tax credit eligible for export of goods on ocean frieght paid to shipping agency

AI Summary

Debate on claiming Input Tax Credit for ocean freight under GST in India; documentation and RCM proof essential. A discussion on the eligibility of Input Tax Credit (ITC) on ocean freight paid to shipping agencies under the Goods and Services Tax (GST) regime in India. Participants generally agree that ITC can be claimed on these expenses, as exports are considered 'zero-rated supplies,' allowing exporters to claim a refund on GST paid for inputs and services, including ocean freight. The discussion highlights the need for proper documentation, such as invoices and proof of GST payment under the Reverse Charge Mechanism (RCM), to ensure compliance and facilitate the ITC claim process.