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Ocaen freight

AYYAPPAN M (Accounts Manager) (238 Points)

08 August 2017

Please advcie me our forwarded chargred as ocean freight 5%.we will pay to them, said amount will take input eligiblity credit?

some one suggest me if you paid 5% will not eligiblity input tax credigt same if you paid 18 % will take input credit for freight whether it is correct or not

Regards

Ayyappan M

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4 Replies

NITIN KOTAK (SERVICE) (1465 Points)
Replied 08 August 2017

you can eligible to credit input tax credit, this things applicable to service provider not to you

AYYAPPAN M (Accounts Manager) (238 Points)
Replied 08 August 2017

thank you kindly provide any case study if possible

NITIN KOTAK (SERVICE) (1465 Points)
Replied 08 August 2017

Scenario Under GST
As per Notifications 8/2017- Integrated Tax (Rate) and Notification No. 10/2017- Integrated Tax (Rate) dated 28th June, 2017,if Transport of goods in a vessel including services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India, the person liable to pay Goods &Service tax (GST) is the Importer, as defined in clause (26) of section 2 of the Customs Act, 1962(52 of 1962).
Further the Rate of GST shall be 5% of Taxable Service i.e. Ocean Freight.
As per Corrigendum to Notification 8/2017 dated 30thJune, 2017, Where the value of taxable service provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India is not available with the person liable for paying integrated tax, the same shall be deemed to be 10% of the CIF value (sum of cost, insurance and freight) of imported goods.”;
In other Words, GST shall be 5% of Freight or 0.5% of CIF Value.