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.

AI Summary

Exporters Face Challenges Claiming IGST Input Credit on Freight Despite Exemptions Under Section 12(8) IGST Act A discussion on a forum addressed the issue of exporters not receiving input credit for IGST paid on freight for the transportation or courier services of exported goods. The place of supply is determined by the destination of goods, according to section 12(8) of the IGST Act. One participant questioned the inability to claim input tax credit (ITC), while another noted the lack of amendments to address this issue, stating that no solution exists currently. A third contributor highlighted that IGST on freight for exports by air and sea is exempted until September 30, 2020, referencing relevant notifications and press releases.