GST SEA IMPORT FREIGHT BILL OVERSEAS CUSTOMERS

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This query is : Resolved

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This discussion clarifies the Goods and Services Tax (GST) applicability when an Indian clearing and forwarding agent bills an overseas customer for import freight. The consensus is that GST is not applicable on the main freight charge billed to the overseas customer, as it's an export of service. However, GST is payable by the importer in India under the Reverse Charge Mechanism (RCM). The forwarder should charge GST only on their profit margin added to the freight cost.

Arun Kumar M

Arun Kumar M (Querist)

09 June 2020 Dear All

We are a clearing & forwarder located in India. We received an Import shipment, from a foreign destination to Mumbai port. We have to bill Freight to overseas customer for which Liner has given an Invoice for freight without GST.

Please confirm :
As per rule whether is it mandatory that we have to bill with GST to Overseas customer?
We faces many difficulties due to billing GST in the said situation.

Thank you in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 June 2020 No GST applicable on freight bill of overseas customer.
GST payable under RCM by the importer.

Arun Kumar M

Arun Kumar M (Querist)

09 June 2020 Sir, can you please clarify? Here the situation is we got bill from liner in our name without GST. For example say 100 dollars. Now we have to bill the same by adding profit to customer who is in overseas. The importer has no obligation to pay our bills as our contract is with overseas customer who supplies the item for importer. Hope you understood the situation.

Please revert for any clarifications.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 June 2020 Charge GST on your profit margins.
GST on freight payable by importer under RCM.

Arun Kumar M

Arun Kumar M (Querist)

18 June 2020 Sir, any order or section clarifying the same.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

18 June 2020 See GST RCM provisions.

Arun Kumar M

Arun Kumar M (Querist)

19 June 2020 ok sir, thank you very much