gst applicability to FTZW

[Madhavan iyengar]

X Co is located in a Free trade warehousing zone (FTWZ) and provides warehousing services to customer abroad

X co stores goods in warehouse on behalf of foreign customers who send goods to the FTWZ

X co charges warehousing charges to the overseas customers and receives money if foreign exchange

Will X co require to charge GST on such warehousing services and which tax is applicable

Experts views solicited

AI Summary

Place of supply rules may determine whether FTWZ warehousing is treated as export of services or subject to IGST.
Taxability of warehousing services by an FTWZ depends on place of supply: one view treats supplies by SEZ/FTWZ as inter state with IGST payable where place of supply is in India; an alternate view notes that if the SEZ/FTWZ is notified as outside Indian territory and the place of supply is that SEZ/FTWZ, the services may qualify as export of services provided from outside India.