TaxTMI 
TaxTMI 
TaxTMI 
Dear Sir,
Good Afternoon.
We are a Customs Broker having PAN India presence. Our CB Licence is extended to all major ports. Due to introduction of GST, our Business Model or Process of doing business is seems to affected partially. The details of the same is listed below:
1. We have 4 or 5 Major offices at ports and other offices are very small and having very limited staff as the business is ON and OFF. We have kept these offices for applying for tender and also for some Projects received or expected in future. Our question is Whether we need separate registration for all these offices as well as they situated in different states ??
2. Being Customs broker we incur certain charges prior to clearance of Import and Export of Goods on behalf of the Customer and claim them as re-imbursement. This has been earlier recognised by CBEC as 'PURE AGENT'. We are given to understand that this concept is NO MORE AVAILABLE... Please clarify.
3. When we are paying and taking the amount as re-imbursement without any value addition why the GST is to be applied. If this provision is available, please clarify how to raise the bill - Is it through Invoice, Debit note without GST??
4. Whether the concept of ISD is applicable to our trade ?? If so, please guide on how to do it?
5. When the goods are imported, the GST is levied on CIF + 1 % = Assessable Value basis. Then why freight is separately charged for GST from Freight Forwarder or Shipping Line or Airline?? Atleast for Import this should be droped or amended?? Please clarify??
6. Similarly when the goods are exported by AIR and SEA there is two different slabs for taxing the freight - AIR -18% and SEA -5%. Here notably, the main cost of operations for AIR or SEA is FUEL, which is still out of Purview of GST, then it is taxed under GST?? Out of academic interest would like to know the logic behind taxation of Import and Export Freight??
7. Being Customs Broker, we also bound to give end to end solution of Transporting the Goods to Customer's Place and vice versa. Mostly we are taking vehicle from the Market, which sometimes owned by the Supplier and sometime being outsourced by him as well. The supplier bills us at X price and we bill it to Customer at X+Y ( Y is our margin). While we bill to customers some with RCM by Customers and some we charge S.Tax (as they may or may not pay S.Tax) under GTA. Whether the same process can continue under GST regime??
8. While reading some of the slides / notes shared, it is mentioned that if the Customer does not make payment to Supplier within 180 days, the ITC will be reversed and the Customer has to pay GST. Is this correct ?
9. If the point no.8 is correct, how the Department will come to know whether the payment are made or not?? Does it provide legal security to Supplier for getting confirm payment if the ITC is taken by the Customers??
10. Whether the Concept of Bill of Supply will be applicable to Service Industries like us?
11. While we do customs clearance, we also some time, asked by customers to do Loading & Unloading at factory or site. We engage Forklift, Crane and other handling equipments for this activity. What is the GST rate applicable for this activity?? We were told that we need to apply the rate of the equipment being taxed under GST??
12. For Customs Broker buriness, whether following cost can be taken as ITC :
a. Telephone Expenses - Landline, Mobile, Internet, Dongle
b. Expenses incurred for Staff training / coaching etc paid to Professionals / Academy.
c. Expenses spent on Staff for their welfare like - Group Mediclaim, TEA / Coffee / Canteen Expenses, Uniform etc..
d. Capital Expenses spent other than Motor Car used by Directors.
e.
13. For Customs Broker, when and what are circumstances Reverse Charge Mechanism is applicable to Customs Broker
14. When the e-way bill is expected to be introduced ?? Also is there any API is available to take data from User's S/W to E-waybill portal for generating e-waybill?
15. Whether place of supply and receipt of supply must be shown in Invoice ?? If we bill to b2B Customer who is neither in place of Supply Say Chennai nor receipt of Supply - say Madurai. The business is received from a Friend who is located in Delhi and wanted us to clear and deliver the goods at Madurai but bill to him at Delhi? Whether SGST+CGST is to be charged ?? or IGST is to be charged??
Look forward for early clarification and all the questions are raised purely on our current difficulties / issues faced by Customs Brokers..
Thanks and Best Regards,
Nagarajan PV