SEIS eligibility on freight expenses

[SARTHAK MITTAL]

Can SEIS be claimed for freight expenses in a case where an exporter supply's goods and recovers freight on CIF basis on a single invoice as per contract.

Can a supplier de-bundle a composite supply to avail benefits under FTP, or would the above transaction be classified as goods (considering general rules of interpretation) of CPC.

[YAGAY and SUN]

Please check the following link.

https://www.taxtmi.com/forum/issue?id=116360

AI Summary

SEIS eligibility for freight on CIF invoices hinges on whether freight is separable or treated as part of goods supply.
Whether freight charged on a CIF single-invoice export qualifies for SEIS depends on whether the freight component can be treated as a separable service eligible under SEIS, or whether, under general rules of interpretation for composite supplies, the transaction must be classified as a supply of goods, affecting eligibility for Foreign Trade Policy benefits.