Export of Service by freight forwarder

[Kaustubh Karandikar]

Exporter in India had issued a Purchase Order to a nominated Agent viz. PQR situated outside India, for transportation of goods by Air for export. PQR in turn had entrusted this work to XYZ for which XYZ had charged to PQR in foreign currency. Is it an export of service and therefore XYZ not liable to pay GST on the amount recovered from PQR?

AI Summary

Debate on Freight Forwarding: Is XYZ's Service to PQR an Export Exempt from GST or an Intermediary Service? A discussion on a forum revolves around whether a freight forwarding service provided by an Indian company, XYZ, to a foreign company, PQR, qualifies as an export of service and is exempt from GST. Shilpi Jain initially suggests it is an export of service, but Kaustubh Karandikar argues it is an intermediary service subject to GST, as the service is consumed in India. Shilpi Jain and Kasturi Sethi counter that XYZ acts on its own account, not as an intermediary, referencing relevant circulars to support their view. Nadeem Faridi seeks further clarification on the definition of 'own account' and intermediary roles, while Kasturi Sethi offers guidance on addressing GST department notices.