Important Keyword: Notification 04/2020 Central Tax Rate, export freight GST exemption, GST nil ocean freight India, CGST exemption export logistics, air freight GST exemption,
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[F. No.354/123/2020-TRU]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 30th September, 2020
Notification No. 04/2020 - Central Tax (Rate): Extension of CGST exemption on services by way of transportation of goods by air or by sea from customs station of clearance in India to a place outside India, by one year i.e. up to 30.09.2021.
Table of Contents
GST: [TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
G.S.R. -----(E). In exercise of the powers conferred by sub-section (3) and (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.12/2017- Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691(E), dated the 28th June, 2017, namely:
In the said notification, in the Table, -
(i) against serial number 19A, in the entry in column (5), for the figures "2020", the figures "2021" shall be substituted;
(ii) against serial number 19B, in the entry in column (5), for the figures "2020", the figures "2021" shall be substituted;
2. This notification shall come into force with effect from the 1st day of October, 2020.
(Pramod Kumar)
Director to the
Government of India
Note: - The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 12/2017 - Central Tax (Rate), dated the 28th June, 2017, vide number G.S.R. 691 (E), dated the 28th June, 2017 and was last amended by notification No. 28/2019 - Central Tax (Rate), dated the 31st December, 2019 vide number G.S.R. 970(E), dated the 31st December, 2019.
📚 Frequently Asked Questions (FAQs): Notification No. 04/2020 – Central Tax (Rate)
Q1: What is Notification No. 04/2020 – Central Tax (Rate)?
Answer:
It extends GST exemption on export freight (air + sea) up to 30 Sept 2021.
Q2: Which services are exempt from GST due to this?
Answer:
Transportation of goods from Indian customs station to foreign destination.
Q3: Does this apply to courier or cargo agents?
Answer:
Yes — as long as they provide international freight services for exports.
Q4: What about freight charges up to Indian port only?
Answer:
Not exempt — only export leg of the journey is covered.
Q5: Impact on ITC?
Answer:
No GST charged → No ITC claim required.
Q6: Does it apply to both sea and air exports?
Answer:
✔ Yes (entries 19A & 19B amended to 2021)
Q7: Is there any turnover limit for this exemption?
Answer:
No — applies to all exporters.
Q8: Are customs clearance charges exempt too?
Answer:
No — only transportation service after clearance to foreign shores.
Q9: Does it apply when goods return due to rejection?
Answer:
Outbound freight = exempt
Inbound return freight = taxable
Q10: What if freight is prepaid by the foreign buyer?
Answer:
Still exempt — as long as service originates from India.
Q11: Does it apply to merchant exporters?
Answer:
Yes — exemption applies to nature of service, not the exporter type.
Q12: Is ocean freight exempt when provided by foreign shipping line?
Answer:
Yes — when service is from India to abroad.
Q13: Do forwarders need GST registration for exemptions?
Answer:
Depends on aggregate turnover & other taxable services:
👉 https://finodha.in/online-gst-registration/
Q14: What if we wrongly paid GST on export freight?
Answer:
Refund can be filed — support documents required.
👉 https://finodha.in/gst-return-filing/
Q15: Any reverse charge mechanism (RCM) impact?
Answer:
Export outbound freight = Not under RCM.
Q16: Why is this exemption extended repeatedly?
Answer:
To sustain export growth until logistics overhaul stabilizes.
Download PDF: Notification No. 04/2020 – Central Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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