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Issue ID: 119904
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Can we pay IGST on Ocean Freight i.e. 5% in INR instaed of US$

Date 23 Apr 2025
Replies 2 Replies
Views 1035 Views
IGST on ocean freight must be paid domestically by the importer under reverse charge, not to carriers.
IGST on ocean freight under CIF imports is payable by the importer under the reverse charge mechanism. Convert the foreign-currency freight to Indian currency using the CBIC exchange rate on the Bill of Entry date, compute IGST on that INR value, and pay the tax through the GST portal to the government. Shipping lines may invoice freight in foreign currency, but IGST is the importer's statutory liability and is not to be paid to the carrier; claim Input Tax Credit where eligible and first confirm whether GST liability arises for the specific freight. (AI Summary)

sir,

Can we pay IGST on Ocean Freight i.e. 5% in INR instaed of US$ ???

For Example.

Ocean Freight Amount US$ 100

IGST on Frieght i.e. 5% US$ 5

we can pay IGST on Frieght in INR, but shipping line ask IGST on Freight have to pay in US$.

please suggest.

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