GST FAQ for Logistics / CHA / Transporter – Part 1

FAQ

Sl No Question Answer Activity
1 What is the rate of tax on export ocean freight
when export ocean freight is prepaid in India ?
5% Export
2 What is the rate of tax on export ocean freight
when it is on collect terms ?
Zero Rated ( Export of services section IGST 13(9) Export
3 What is the rate of tax on export air freight when
export freight is prepaid in India ?
18% Export
4 What is the rate of tax on Import air freight when
freight is collected in India ?
0%  ( Exempt Service ) Import
5 What is the rate of tax on THC, DO charges, survey
and other origin charges when these charges are prepaid?
18% Export / Import
6 What is the rate of tax on THC, DO charges, survey
and other origin charges when these charges are on collect from overseas agent?
Zero Rated where for Air / Ocean export on charge collect bases Export
7 What is the rate of tax on THC, DO charges, survey
and other origin charges when these charges are on collect from Indian Customers and Shippers ?
18% Export
8 What are the tax rates on charges that are not
specified or where SAC codes are not defined?
18% General
9 If line charges export ocean freight with break up
such as basic freight, baf, caf, etc., as a forwarder can we charge under a single head as freight?
One can charge under one single
head. This is subject to no variation in tax charged and paid for the same activity. To stay out of litigation, your composite rate should be lower than what you have paid.
Export
10 Can we merge all origin charges such as THC, B/L
Fee, etc into export ocean freight and show a single head as freight or lumpsum freight or all in charges?
Rate of 18% will be applicable
once you bundle all the services.
Export

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