As most of us know, Government of India is consolidating its various indirect taxes into one consolidated Goods and Service Tax (GST) effective 1 July 2017. Consequent to this, we would like to inform that customers shipping to / from India and who are located outside of India will be liable for a government regulated GST on certain services rendered locally within India. This tax will replace the earlier applied Indian service tax on local services.
The application of the India GST will result in a tax of 18 percent* on both import and export service charges including local charges relating to terminal handling and inland haulage charges. This tax will replace the existing India Service tax charged at 15 percent.
Below is the list of local charges which are liable to service tax when provided in connection with either import or export.
| Export from India | Import to India |
|---|---|
| Inland Haulage Export | Inland Haulage Import |
| Export Intermodal Fuel Surcharge | Import Intermodal Fuel Surcharge |
| Merchant Haulage Exports | Merchant Haulage Imports |
| Pick Up Charge Exports | Drop Off Charge Imports |
| Free In | Imports Landside Haulage |
| Port Additional / Port Dues – Export | Inland Haulage Container Weighing – Destination |
| Port Security Charge – Export | Free Out |
| Handling Charge – Origin | Port Additional / Port Dues – Import |
| Recovery Handling Cost – Export | Port Security Charge – Import |
| Government & Port Tax Exports | Handling Charge – Destination |
| Recovery Handling Cost – Import | |
| Government & Port Tax Imports |
*Adjustment % is based on GST rate as of Jun 20, 2017, and is subject to change. Maersk Line does not plan to make market announcements with regards to the changes to the India GST rate.
It is important for us to stress that this is a tax imposed by the Indian government, merely recovered by Maersk Line and is a replacement of the earlier Indian service tax. This is not a Maersk Line surcharge.
