Levy of GST— In the instant case, the applicant is mainly engaged in the manufacturing of Single Super Phosphate (Fertilizer), Sulphuric Acid Chemical). For the manufacture of Single Super Phosphate (SSP), the major raw material required is Pock Phosphate which is imported from various countries like Egypt, Jordan & Morocco and also procured locally within country. The company is registered under the GST laws for payments of GST/IGST besides being paying the customs duty on import of Pock Phosphate.

Applicant seeking advance ruling as to payment of IGST under Reverse Charge Mechanism (RCM) on deemed Ocean Freight on import of goods (raw material) on CIF basis. However, IGST has already been paid on total CIF value which includes the value of ocean freight.

In the instant case, the applicant appears to be questioning the veracity and validity of levy of IGST on ocean freight under reverse charge mechanism, as stipulated under the aforesaid Notifications issued by the Central Government, on the recommendations of the GST council deriving powers as envisaged under section 5, subsection (1) of section 6 and clause (iii) and clause (iv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2016) road with sub-section (5) of section 15 and sub-section (1) of section 16 of the Central Goods and Services fax Act, 2017 (12 of 2017) and under sub-section (3) of section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017).

Held that— In terms of prevailing provisions of the IGST Act, 2017 and the Rules made there under as discussed above, the applicant in addition to IGST on import of goods levied under the Customs Act, 1962 read with the Custom Tariff Act, 1975 would also be liable to pay IGST on deemed ocean freight under reverse charge mechanism as stipulated under Notification No. 10/2017-I.T.(Rate) read with Notification No. 8/2017-I.T.(Rate).