In case of GST under reverse charge on ocean freight, for FOB contracts, importer to pay IGST @ 5% as per Sr. No.9(ii) of Notification. No. 8/2017-Integrated Tax (Rate) on freight charges paid to the foreign shipping line. In case of CIF Contracts, importer to pay IGST @ 5% as per Sr. No.9(ii) of Notification. No. 8/2017-Integrated Tax (Rate) on 10% of the CIF value as per Bill of Entry (Without considering the Gujarat High Court decision). Is my understanding correct sir? Please Guide.
Your understanding is absolutely correct Sir. However as mentioned by you also, by way of series of judgment pronounced by GHC, IGST should not be levied and collected on Ocean freight under RCM and thus tax paid, if any, should be claimed as refund. Anyways finality can be reached once SC decides the matter.
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