Transportation expenses

[subramanian vijayakumar]

Whether an exporter who has paid transportation expenses paid to the cargo company can claim it as it and get refunds

[Rajagopalan Ranganathan]

Sir,

The government will refund only CGST/IGST paid on transportation charges. The transportation charges will be reimbursed by your customer provided he agrees for that. Normally price of export goods will include transportation charges also.

[YAGAY andSUN]

It will depend on the INCOTERMS 2010 read with the contract/PO/Agreement which you had entered in with your customer(s) that who will pay what at which destination.

AI Summary

Refund of GST on transportation charges: tax paid on transport can be refunded while cost reimbursement depends on contract terms. An exporter who pays transportation charges may obtain a refund of the tax component, with the government refunding CGST/IGST paid on transportation; reimbursement of the transportation cost itself depends on the contract or governing INCOTERMS which allocate payment responsibility between buyer and seller.