If client give service of ocean freight for goods exported out of india to domestic clients, it treated as nil rated, as per 25.01.2018 notification, but do clients need to reverse common ITC based on turnover of taxable and non taxable supply. Under rule 42 and 43
Yes you are correct as per Notification 2/2018 CT (r) its exempted .
But for the purpose of calculation of reversal, these services will not be taken into the value of exempt supplies. This was inserted vide Notification no. 3/2018-Central Tax dated 23rd January 2018.
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