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.

[KASTURI SETHI]

Query-wise reply is as under:-

1. HSN 9965 Rate 5% IGST

2. Physically service has been provided from non-taxable territory to non-taxable territory. This service has been provided in relation to goods which are covered under serial no 7 of Schedule-III. So this service is also eligible for non-taxability on the ground of 'No-supply'. To avoid unnecessary litigation, Govt. should add serial no.7 A below serial no. 7 of Schedule-III.

This is my view. Views of other experts are also solicited.

[Alkesh Jani]

Sir,

Circular No.78/2018-GST dated 31.12.2018, may be of help in the matter.

Thanks,

With regards

[PRAMOD GUPTA]

Thanks Sethi and Jani sir

[Ramesh Kothari]

Simply there is no GST applicable all the services rendered out side tax territory of India any service charges collected from outside India party for providing this service that is also not taxable

However if this services provided by you as a logistics co. in India on begalb if Indian co. and amount paid in India than GST will applicable

AI Summary

Cross-border transportation services may be outside GST scope when wholly supplied and performed outside the taxable territory.
The supply of ocean freight by an Indian logistics provider for carriage wholly between foreign ports may be treated as no supply because it is performed and received outside the taxable territory, or alternatively characterised as an export of service eligible for zero rating; resolution depends on the place of provision, relation to goods excluded under Schedule III, and documentary basis where LUT was not furnished, with administrative circular guidance cited for practice.