Sea fright

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2013 Dear Sir

Whether Sea Freight paid will be covered under Goods Transport Service ? I think sea fright will not be covered under GTA but I am not sure

Ganeshbabu K

Ganeshbabu K (Expert)
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13 June 2013 1)Sea freight for goods from outside India to first customs station of clearance in India not taxable

2)Sea freight for goods from India to outside India not taxable, since per rule 10 of Place of Provision of Service Rules, Place of Provision of Service is outside India.

Thanks & regards
Ganesh babu k

Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2013 sir
what about sea freight paid for inland movement. for example sea freight form mundra to mumbai

Ganeshbabu K

Ganeshbabu K (Expert)
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13 June 2013 Transport of goods by inland waterways is not taxable--Included in negative list of services ...

Thanks & regards
Ganesh babu k

Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2013 dear Ganeshji

As per Section 2(b) of inland vessels Act 1917 inland water means any canal,river, lake or other navigable water. Heans it will not cover sea freight paid

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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23 July 2025 Regarding **Sea Freight** and its taxation under GST, here's a breakdown based on the provided information:

### 1. **Sea Freight for International Transportation (Import/Export)**:

* **Sea Freight for Import (from outside India to the first customs station in India)**:

* This is **not taxable** under GST. The reason is that the service provided is classified under **"export of service"**, which is exempt from GST.
* As per **Rule 10 of the Place of Provision of Services Rules**, the place of provision of this service is outside India, and hence it is not liable for GST.
* **Sea Freight for Export (from India to outside India)**:

* Similarly, this is also **not taxable** under GST for the same reason as import freight — it is considered an export of service.

### 2. **Inland Movement (Inland Sea Freight)**:

* If **sea freight** is paid for the **inland movement** (for example, from **Mundra** to **Mumbai** via sea), it is treated differently. This involves **inland waterways**.

* **Inland Waterways** are defined under **Section 2(b) of the Inland Vessels Act, 1917**, which specifically includes **canals, rivers, lakes**, and other navigable waters but **does not cover sea freight**.
* Therefore, **sea freight** for inland transportation will **not be covered under the Inland Waterways exemption**.

### 3. **Goods Transport Agency (GTA)**:

* **Sea Freight paid to Goods Transport Agency (GTA)**:

* Generally, the service of transportation by road, rail, or by inland waterways is taxable under **GTA**. However, since **sea freight** involves a different mode of transport (sea), it typically **does not fall under the purview of GTA**.
* Therefore, sea freight in this context is **not covered under the Goods Transport Agency (GTA)**, which generally pertains to road transport.

### 4. **Summary**:

* **Sea Freight for international transportation** (both import and export): **Not taxable** under GST, as it's classified as an export service.
* **Sea Freight for inland transportation** (within India): **Not exempt**, and **sea freight** paid for this would **not fall under Inland Waterways**. It would be subject to the relevant GST provisions based on the specific circumstances.

If you're dealing with specific transactions, especially regarding inland sea transport, I recommend consulting with a **GST expert** for a more tailored view, as the treatment may depend on other factors or clarifications.

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