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

Place of supply rules: transportation for exported goods treated as outside India and not taxable, yet inter state supply.
An amendment effective 1 February 2019 to Section 12(8) of the IGST Act provides that transportation services relating to goods exported from India have their place of supply at the destination outside India, rendering those transportation services not taxable under GST; such supplies are nevertheless treated as inter State supplies when the supplier is in India, and input tax credit on costs for these non taxable outward supplies is not available under the proviso to Section 16(2) of the CGST Act.