whether GST aplicable with respect to cross country service given

[PRAMOD GUPTA]

X pvt ltd. is a logistic company in India having GST Number.

It gives various transportation of goods service in and outside India.

In August 2017 X Ltd. had received a transportation of goods contract from a comapnay registered in Brazil. Goods had to be transported from port in China to port in Brazil thru vessel.

For tranporting goods from China to Brazil X Ltd., had received $1,100 as ocean freight.

Query no.-1 : For Annual return purpose wants to know classification of this service of transporting goods from China to Brazil by charging ocean freight.

Whether it is Zero rated supply i.e. export of service as it fulfills all the conditions of export of service or it is fully exempt supply as service is totally given outside India or it is NO SUPPLY as service is given totally out of India

Query no.-2 : If it is Zero rated supply, what if X Ltd., without having LUT had invoiced this without charging GST on assuming it to be exempted supply.

Query-3 : Is there any printed reference available like notification number / circular number which can be shown to GST officials.

AI Summary

GST Applicability on International Logistics: Clarification Needed for Non-Taxable Services Under Circular No.78/2018-GST A logistics company in India, X Pvt Ltd., sought clarification on the applicability of GST for transporting goods from China to Brazil under a contract with a Brazilian company. The queries involved whether the service is zero-rated, exempt, or considered 'no supply' since it occurs outside India. Responses indicated that the service might be non-taxable as it involves non-taxable territories, referencing Circular No.78/2018-GST. It was suggested that the government should clarify this in Schedule-III to avoid litigation. Additionally, GST would apply if the service was provided on behalf of an Indian company with payments made in India.