Outbound shipment transactions

[Nisha Prabhu]

Whether the outbound shipments where both parties; the customer and logistics company reside in India, will fall under IGST (Integrated Goods and Service Tax) with place of supply as '97- Other territory' with a value of 18%.

Is there any change from 01st Feb 2019?

AI Summary

Are outbound shipments within India subject to IGST at 18%? Amendment exempts export-related transport services from GST. A discussion on a forum addressed whether outbound shipments within India, where both the customer and logistics company are based, are subject to IGST with a place of supply categorized as '97- Other territory' at an 18% rate. An amendment effective from February 1, 2019, was highlighted, altering the place of supply for transportation services related to exported goods, thus exempting such services from GST. It was clarified that Input Tax Credit (ITC) cannot be availed if sales are non-taxable, and the supply is considered inter-State as per IGST provisions.