We have just been advised that as of 1 July 2017 the government of India imposed a GST tax, which has replaced the current indirect tax regime in India and unify various taxes currently levied into a single tax structure. The GST was effective as of 1 July 2017 applicable to the invoicing date and not date of shipment.

The GST rates applicable for transportation services are:

● 5% on freight and freight related charges
● 18% on ancillary charges (terminal handling charges, inland haulage charges, documentation fee, demmurage & detention etc.)

For exports pre-paid out of India - On freight and related charges, GST will be invoiced by Tomax Logistics on behalf of the shipping line. This is a major change compared to the previous tax structure as service and tax on freight and related charges were taxed at rated zero. The other charges will be taxed at 18%.

For exports collection out of India - It would be out of GST purview, being a service provided and received by customers located in non-taxable territory.

For imports prepaid into India - On freight and related charges, the customer will directly settle GST to the government and claim input credit after payment.

For import collection out of India - GST will be charged by the shipping line on the customer in India at the respective rates, based on the nature of charges.

For further information please don't hesitate to contact Marc Regan/Clint Brooks regarding imports or Don McKenzie regarding exports on 1300 1 TOMAX.