Dear Sir/Madam,
Under GST regime Ocean Freight Export is taxable @ 5%
I need to know if Freight Forwarders buys Ocean Freight @ USD1000 from shipping line & pays GST@5% and sell it to Exporter @ usd1200, @ what GST rate Freight Forwarder should bill to exporter 5% or 18%?
Kindly confirm.
Best Regards
Anwar
GST Rates for Freight Forwarders Hinge on Service Characterization and Billing Structure in Export Transactions Legal Document Summary:A discussion forum explores GST implications for freight forwarders in export transactions. The key legal issue centers on determining the appropriate GST rate when reselling ocean freight. The analysis reveals two primary scenarios: (1) Pure freight resale attracts 5% GST under SAC 996521 when acting as a principal, and (2) Composite logistics services with bundled charges attract 18% GST under SAC 9967. The applicable rate depends on service characterization, billing format, and whether services are separately itemized or combined. (AI Summary)
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