OCEAN FRIGHT RCM CHARGES

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This discussion clarifies the correct Goods and Services Tax (GST) classification for ocean freight under the Reverse Charge Mechanism (RCM). It addresses the confusion between reporting it under 'Inward Supplies' (A(3)) versus 'Import Services' (A(2)). The consensus, based on notification No. 10/2017, is that ocean freight from outside India to the Indian customs station constitutes an 'Import of Service' and should be reported under A(2).

Shankar Rao

Shankar Rao (Querist)

26 March 2020 Dear sir,

ocean freight (RCM) we have mentioning under A(3) i.e inward supplies liable to reverse charge but we heard some where we have to mention under table A(2) i.e Import services, which one correct sir?

1) which services will come under import services..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 March 2020 Ocean freight (RCM) have to be mentioned under A(3) only.
Software services received from outside India will be import of service.

CA Suresh Jain

CA Suresh Jain (Expert)

26 March 2020 Please refer to the following wording of the relevant entry in notification No. 10/2017 :
"Services supplied by 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."
From the above, it is clear that the service is "import of service" and therefore to be mentioned accordingly.

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