GST on ocean freight for import purchase under RCM, Goods and Services Tax - GST

[Pradeep Sarangi]

Dear Expert,

is gst applicable on ocean freight for import purchase under RCM ? What is the tax rate & how to calculate the same ?

Regards

Pradeep

Posts / Replies

[Alkesh Jani]

Shri

Please elaborate the query, do you mean GST applicable on ocean freight for import of Goods specified under RCM?

Thanks

[Pradeep Sarangi]

Yes Sir,

Applicablity of GST on ocean freight for import of goods. As per hon'ble judgement of SC, regarding the case of state of Union vs Mohit Minerals - 2022 (5) TMI 968 - SUPREME COURT. is it applicable for importer under RCM now ?

Regards

Pradeep

[Kiran Tahelani]

If goods are imported under CIF basis- No Rcm- Mohit Mineral case

if goods are importered under FOB basis:

---if shipper is located in india- he will charge gst under forward charge- you dont have to pay under rcm

---if shipper is foreign entity not registered in india- you need discharge gst under RCM-since mohit mineral covers only cif contract.

Rate is 5% on actual frieght amount.

Note: other experts please correct me if i am wrong.

[Alkesh Jani]

Shri

I agree with the views expressed by the expert above.

Thanks

[Shilpi Jain]

Liability under RCM exists if you engage the foreign shipper.

No liability under RCM in your hands if the foreign exporter has engaged the foreign shipper