Gst on ocean freight ON FOB

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This query is : Resolved

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This discussion clarifies GST implications for imported goods on an FOB basis where IGST was paid on the CIF value. It addresses whether GST is payable on ocean freight under RCM, especially when freight was paid separately to a foreign vessel owner. The consensus is that RCM on ocean freight is not applicable from October 1, 2023, and refunds can be claimed for any RCM paid after this date, referencing relevant sections of the CGST Act.

Yogesh Motwani

Yogesh Motwani (Querist)
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25 December 2023 a company has imported goods on FOB basis but the custom duty and igst on goods imported has been paid on CIF value which includes ocean freight , ocean freight has been paid seperately to the FOREIGN vessel owner , MY QUERY IS WHETHER THE COMPANY IS LIABLE TO PAY GST ON RCM ON OCEAN FREIGHT ALTHOUGH IT HAS PAID IGST ON CIF VALUE ? THE INVOICE DATE IS 18-9-2023 BUT THE VESSEL REACHED INDIA ON 10-10-2023 .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 December 2023 No need RCM on Ocean Freight has been discontinued, effective from October 1, 2023.

Yogesh Motwani

Yogesh Motwani (Querist)
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25 December 2023 sir if the rcm has been paid in the month of nov 2023 will the rcm will be refunded?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 December 2023 You can claim refund. See Section 54 (8)(e) of CGST ACT.

Yogesh Motwani

Yogesh Motwani (Querist)
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25 December 2023 WE HAVE PAID IGST CAN YOU REFER THE SECTION FOR IGST ACT

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 December 2023 Refer this section and claim refund.

Yogesh Motwani

Yogesh Motwani (Querist)
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25 December 2023 SIR AS PER NOTIFICATION NO 10/2017 INTEGRATED TAX (RATE) DATED 28TH JUNE 2017 SI. NO 01 "Any service supplied by any person who is located in a non-taxable territory to any person other than non-taxable online recipient" GST ON REVERSE CHARGE WILL BE PAID ON OCEAN FREIGHT IN CASE OF FOB

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 December 2023 This notification not applicable from 1st October 2013. RCM not applicable on sea inward freight.

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