Dear Valued Customers,
GST in Brief with simple and easy to understand for a layman below:
GST means Goods and Service Tax eliminating many indirect taxes like VAT, Central Excise duty, Sales Tax, Service Tax etc. etc. It is described as One tax for One nation.
GST is classified under three categories; CGST which means Central Goods and Service Tax, IGST which means Integrated (Interstate) Goods and Service Tax and SGST, State Goods and Service Tax.
It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff.
In a nutshell only value addition will be taxed and burden of tax is to be borne by the final consumer,
For OOCL GST Details, please click.
The following FAQs are based on our very limited understanding of the applicable provisions of GST. They are solely intended as a measure of customer service. Customers are advised to check with their own legal counsel on the application of GST.
Q. How do I get my GSTIN updated in OOCL system?
A. Please send your GSTIN details in PDF format to [email protected].
Q. Will I get the invoice if my GSTIN is not updated in OOCL system?
A. Yes, we will send you the invoice without the GSTIN. However, for such invoices, we will not re-issue any new / revised invoice even if GSTIN is provided later. Therefore, please provide us with your GSTIN and other requested details in the above weblink at least 3 day before 1 July 2017. It will facilitate us to update our system in a timely manner and assist you to avail Input Tax Credit.
Q. What will be the applicable GST rate for our shipment?
A. As per Government notification, GST for Ocean Freight is levied at 5%. GST for other charges is levied at 18%.
Q. Is GST applicable on detention charges? If yes, what is the rate?
A. Yes, GST of 18% is applicable on detention charges per Government notification.
Q. If the invoice is raised before implementation of GST and payment made after implementation (whether in full or partial), will GST be applicable?
A. If services have been rendered, invoices are issued prior to 1 July 2017 and payment received after 1 July 2017, no GST will be applicable.
Q. What will happen to those invoices issued prior 1 July 2017 and need revision after July 2017? Will GST be applicable?
A. GST will be applicable for invoices issued on or after 1 Jul 2017.
Q. Will there be any changes in invoice format – before and after GST implementation?
A. Yes, a GSTIN field along with other mandatory fields will be added into our invoice when GST comes into effect on 1 July 2017, as per Government invoicing rules.
Q. How will OOCL system identify IGST, CGST and SGST if the same customer has different offices at different state under the new GST regime?
A. In case of Intra State supply (where first two digit of OOCL invoicing office GSTIN is equal to first two digit of the invoicee’s GSTIN as provided to OOCL) CGST and SGST will apply. In case of inter-state supply, IGST will apply.
Q. In case of a customer who is not required to register, how will OOCL handle those invoices?
A. OOCL will generate the invoice alongwith applicable GST but without GSTIN number of customer.
Q. At what rate of GST will OOCL charge on Ocean Freight in case of import prepaid shipment?
A. In such case, liability of paying tax rest on the importer under the reverse charge mechanism.
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