Proviso u/s 12(8)(b) IGST Act

[Pankaj Rawat]

Sir

I have subscribed your books "GST Law & Analysis"

And in Page No. 671 of volume II , in above said section , which is being effective from 1/2/19 , By Notification 1/2019 IGST , dt.29/1/19, the provision of Amendment Act 32 of 2018, "where the transportation of Goods is to a place outside India, the place of supply shall be the place of destination of Goods " the GST shall NOT be Applicable.

But as per my point of view , if the place of supply outside India , the IGST shall be applicable , is'nt it...

Actually one of my client getting bill from FedEx courier company (both my client & FedEx in same state) for sending material out of India with IGST charged therein Bill. &when I ask him that he should Charge CGST/SGST on his bill, he quoted the above said Notification. But as per your Book it's exempted . So kindly it's humble Request how it's exempted .

[Pankaj Rawat]

**CLIENT GOT THE BILL FOR COURIER CHARGES ,THE FEDEX HAS CHARGED IGST ON HIS COURIER BILL, STATING ABOVE AMMENDENT IN ACT

[KASTURI SETHI]

SECTION 12. Place of supply of services where location of supplier and recipient is in India

Section 12 of IGST says both (supplier and recipient) are in India. If both are in India how can it be export as per proviso inserted in Section 12(8) of IGST Act. If both are in the same State (as mentioned by you) how IGST is applicable If both are in same State CGST & SGST are applicable. There is a word.'and' between the words,'supplier' and 'recipient' and not word, 'OR' as it exists in Section 13 of IGST.

So it appears to me that there is ambiguity between the title of Section 12 and proviso inserted in Section 12(8). So things are not clear.

[KASTURI SETHI]

In this regard, we can hope clarification from the Board otherwise there will be problem regarding determination of place of supply which may further create confusion in availing ITC whether on CGST/SGST or IGST. Sooner the clarification, less the problems for assessees.

[DR.MARIAPPAN GOVINDARAJAN]

Who is the author of the book referred to by the querist.

[CA Seshukumar]

Dear sir,

In this scenario sec.12 is applicable. Supplier and recipient both are in India. It is to be noted that recipient is not the one who receives the goods but it's the person who receives the services of transportation of goods.

And since amendment has come, the place of supply has been changed ...So as per IGST act sec.7(5)(a) it is an interstate transaction.

We have to test whether it qualifies an export. It's not export as recipient is in India only.

Hence IGST will be payable. It is also to be noted that while filing GSTR-1 the courier supplier will select 99 as other territory as place of supply.

This will not allow input tax credit as place of supply is not the state in which the recipient is.

It's not the welcome amendment and not the i tentoonstelling too....But we have to wait for further amendment...

AI Summary

Place of supply for cross border transport may trigger IGST when supplier and recipient are Indian located, creating reporting and ITC uncertainty.
Amendment to section 12(8) designates the place of supply for transportation as the destination when goods are sent outside India, creating tension when both supplier and recipient are located in India. This gives rise to uncertainty whether such services are exports or domestic supplies, the correct levy (IGST versus CGST/SGST), effects on input tax credit allocation, and appropriate GSTR 1 reporting using an "other territory" designation.