Question13 :
XYZ is importing goods from PQR, Germany. The ocean freight for the same is initially paid by the foreign supplier(PQR) to the shipping line and the same is subsequently recovered from XYZ by adding the value of the same in the selling price and accordingly XYZ is paying import duty on the value which includes charges of ocean freight. IGST is also charged in the bill of entry for imports. Is XYZ liable to pay GST under reverse charge on ocean freight?

Answer:
The Ocean freight is already included in value of import and tax is paid on that. in this case payment by PQR is made as pure agent please see rule 33 of CGST Rules.
Payment made in capacity of pure agent are not to be taxed. (Reply dt. 19/12/2017)