QUESTION
Mr. X exported goods one of his foreign supplier form ICD Delhi. His CHA who is registered in Haryana and his business place is also located in Haryana. His CHA issued `Ocean Freight` invoice of rupees one lakh to him in which GST not charged and marked as `Exempted Service`. Query: Should Mr. X pay GST under RCM, if yes RCM would be paid under IGST Act or CGST Act or GST would not be paid?
ANSWER
FACTS OF THE CASE: Applicability of GST on ocean freight on export of goods.
LAW APPLICABLE: Notification No. 12/2017- Central Tax (Rate)
| 19A | Heading 9965 | Services by way of transportation of goods by an aircraft from customs station of clearance in India to a place outside India | Nil | Nothing contained in this serial number shall apply after the 30th day of September, 2022 |
| 19B | Heading 9965 | Services by way of transportation of goods by a vessel from customs station of clearance in India to a place outside India. | Nil | Nothing contained in this serial number shall apply after the 30th day of September, 2022 |
INTERPRETATION: As per Notification No. 12/2017- Central Tax (Rate) transportation services of goods to a place outside India (export) by Aircraft and vessel are exempt upto September 2022 irrespective of the fact that the GST is paid on forward charge basis or on reverse charge basis.
CONCLUSION: If transportation service is exempt, then question of RCM does not arise. (Reply dt. 21/12/2021)