IGST on Transportation/ Courier service for Exports of Goods

[deepak gulati]

As per proviso to section 12(8) of IGST the place of supply for Transportation/ courier for Exports of Goods will be location of Destination of goods.

The exporter is not getting input credit of IGST paid on freight.

Any solution to this.

[Rajagopalan Ranganathan]

sir,

I would like to know on what grounds you are not able to get ITC of IGST paid on freight?

[Mahir S]

There is no further clarification/amendment after the insertion of the above proviso

So, exporters cannot avail Input credit on the IGST paid on freight.

Even otherwise, lots of benefits have already been provided to the exporters by the Government.

There is no solution as on today.

[KASTURI SETHI]

IGST on freight for export by air and sea is exempted up to 30.9.2020. Go through the below :

Press Release No. 33/2019, dated 20-9-2019 issued after 37Th meeting of GST Council held on 20.9.19

Transportation :

6. To increase the validity of conditional exemption of GST on export freight by air or sea by another year, i.e. till 30-9-2020.

Note : It is proposed to issue notifications giving effect to these recommendations of the Council on 1st October, 2019.

See Notification No.20/19-I.T. (Rate) dated 30.9.19 (Serial No. (i) (e) & (f) amending original notification no.9/17-I.T.(Rate) dated 28.6.17. Also see Notification No.15/18-I.T.(Rate) dated 26.7.18 Serial No.(i) (f) & (g).

AI Summary

IGST place of supply for transportation bars input tax credit on freight; temporary exemption applies to air and sea freight. The place of supply for transportation and courier services for exports is the destination of goods, causing freight to be treated as exported supply and preventing exporters from claiming input tax credit on IGST paid on such freight; a temporary exemption for IGST on air and sea export freight was issued by notification as time bound relief.