RCM on Ocean Freight for transport of Agri Produce, Goods and Services Tax - GST

[Balakrishnan Ramalingam]

Friends,

My clients regulary import agri produce from foreign countries by vessels.

Is there any exemption available, wrt to levy of RCM on ocean freight?

Regards

R.Balakrishnan FCA

Posts / Replies

[SHARAD ANADA]

Gujarat High court has granted stay on RCM on ocean freight

2019 (5) TMI 1212 - GUJARAT HIGH COURT GHANSHYAMLAL AND COMPANY THROUGH PROPRIETOR GHANSHYAMLAL BADRILAL SOMANI VERSUS UNION OF INDIA

[Balakrishnan Ramalingam]

Thank you,

But I understand that the two stays are only to the applicants exclusive.

Hence ignoring the stays I would like to know the legal status

[KASTURI SETHI]

No exemption is available on the ground of agricultural produce. The purpose of exemption for agricultural produce is to give benefit to the farmer who is cultivator.For the purpose of import ocean freight is taxable @ 5% under RCM. Notification No.13/2017-CT(Rate) dated 28.6.17 and Notification No.8/2017-IGST (Rate) dated 28.6.17. There is double taxation. IGST @ 5% is on import of service under RCM and also IGST as part of Customs duty. Double payment of tax has been upheld by

2018 (14) G.S.T.L. 306 (A.A.R. - GST) = 2018 (6) TMI 431 - AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND IN RE : BAHL PAPER MILLS LTD.

[SANJAY SINGLA]

Whether it is CIF or FOB.

[KASTURI SETHI]

It must be CIF.

[Balakrishnan Ramalingam]

It is immaterial whether it is cif or fob. Since in both cases RCM is levied.

[YAGAY andSUN]

However, you may file writ petition to seek specific relief in such matters.

[Anil Seth]

pl clarify under which clause of Notification 13/2017 dated 28.6.17 ocean freight paid is taxable under RCM.

[Anil Seth]

what is the status of Mohit Minerals P. Ltd vs UOI = 2018 (2) TMI 770 - GUJARAT HIGH COURT case on ocean freight under RCM. Pl update.

[Balakrishnan Ramalingam]

S. No. 10 of noti. 10/2017

[Balakrishnan Ramalingam]

I read somewhere coming for hearing in June along an another similar case

[SANJAY SINGLA]

Dear Sir,

There is some issue in this notification.

1. Liability of RCM is recipientas per Sec 5(3). Importer is not recipient in this case as per Sec 2 (93) of CGST Act, as he is not making any payment for ocean freight.

2. Recipient has to make invoice as per GST per RCM supply. for this no time of supply is mention in such a situtation in Sec 12(3) of the Act.

3. Place of Supply: for every supply, Place of supply has to be determined as per Sec 10, 11, 12 or 13. But no section is prescribed where supplier and Recipient both are outside India.