Input Tax credit on Export ocean freight charged by Shipping line @ 5% to Exporter of goods

[Ripen Sahu]

Whether an exporter of goods is eligible to avail Input Tax Credit (ITC) of GST charged at 5% on ocean freight by the shipping line, and if so, whether such ITC can be utilized for claiming a refund or for set-off against output tax liability. Further, whether the restriction of ITC in case of concessional GST rate (5%) is applicable only to the supplier (shipping line) or also extends to the recipient (exporter of goods). Additionally, whether ITC to the exporter is available only in cases where the shipping line charges GST at 18%, thereby restricting credit eligibility when GST is charged at 5%

[Shilpi Jain]

Exporter would be eligible for credit. Restriction if any is for supplier

AI Summary

Input Tax Credit on ocean freight raises exporter eligibility, refund use, and rate-based credit restrictions. Eligibility of an exporter of goods to avail Input Tax Credit on GST charged at 5% by a shipping line on ocean freight, and whether such credit can be used for refund or set-off against output tax liability, is the central issue. The discussion also examines whether any restriction tied to the concessional GST rate applies only to the shipping line or also to the exporter, and whether credit is available only where GST is charged at 18% rather than 5%.