GST on transportation outside india

[Madhavan iyengar]

A Company based in Gujrat has engaged a transporter to transport goods from gujarat to nepal goods will be transported to nepal ie outside india the transporter has charged IGST

Issues:

Is GST to be paid on RCM by the Company in gujarat for transportation charges paid to the indian transporter

[Ganeshan Kalyani]

CGST + SGST is applicable.

[Madhavan iyengar]

Sir

Thanks for your views

further points

Since transportation is to destination outside India why should tax be applicable as per IGST Actsec 13(8) where destination of goods is outside India Place of supply will be outside India kindly clarify

[KASTURI SETHI]

Dear Sir,

(i) Inter-State (de fecto, inter-nation) supply has taken place. This is an undisputed fact. Hence IGST is applicable. IGST

(ii) Consignee is outside country i.e. in non-taxable territory. Hence consignee is out of RCM.

(iii) Now what remains left is that is to be analyzed. Liability is either on Consignor or GTA.

(iv) First Liability (preference) is cast upon consignor under RCM and thereafter GTA.

In this case GTA is free. Consignor must pay IGST.

[Ramesh Kothari]

It's clearcut that material is Transport outside India hence no question of applicability of GST

AI Summary

Place of supply outside India may trigger IGST and place RCM liability on the consignor rather than the consignee. When the place of supply is outside India because goods are destined for a consignee in a non taxable territory, the transaction qualifies as an inter state export and attracts IGST; the consignee is not subject to reverse charge, and RCM liability for transportation services by a Goods Transport Agency is primarily cast on the consignor before the GTA, so the consignor may be required to discharge tax under RCM if conditions apply.