Treatment of Foreign CHA Freight Invoice Entry

This query is : Resolved

Ganapat (Querist)
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04 June 2025 If Mr. X Export Of Goods From India To Oman. Mr. X Received Ocean Freight Invoice Of USD. 800 From Mr. Y Which Are Located In Oman. The Freight Invoice Is Without GST. I Have Doubts Which Are Below

1) How To Pass Accounting Entry In Books
2) Can Mr. X Liable To Pay RCM On Ocean Freight.
3) If Mr. X Liable To Pay RCM On Freight Then What Is The RCM Rate ?
4) This Ocean Freight Invoice Treated As Import Of Service ?

Ram Avtar Singh

Ram Avtar Singh (Expert)
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07 June 2025 No, in this case, Mr. X is not liable to pay RCM on ocean freight.
Why?
As per Notification No. 10/2017-IGST (Rate), RCM on ocean freight applies only to import of goods into India where goods are transported by a foreign shipping line.

In your case:

Goods are exported from India to Oman.

So this is not an import of goods.

Hence, RCM is NOT applicable.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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07 June 2025 Ocean Freight Expense A/c Dr. ₹ [INR equivalent of USD 800]
To Mr. Y (Oman Party) A/c ₹ [Same amount]

Message likes : 1 times

Ganapat

Ganapat (Querist)
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10 June 2025 thank you for your valuable answered

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