GST on Courier charges

[Kaustubh Karandikar]

XYZ(India) is a freight forwarder who is transporting goods from India to a place outside India for his client in India. In relation to this transportation, the client in India had given XYZ certain documents for sending the same via courier to the customer of the client outside India. XYZ had sent the same by courier and recovered the courier charges from the client in India. Is XYZ liable to pay GST on courier charges recovered? In my view it will fall under Section 12(2)(a) of IGST Act and accordingly, XYZ will be liable to pay GST. Views of the experts please.

AI Summary

Debate on XYZ's GST Liability for International Courier Charges: Section 12(2)(a) vs. 12(8) of IGST Act A freight forwarder, XYZ, is transporting goods from India to an international location for a client and has charged the client for courier services to send documents abroad. The discussion focuses on whether XYZ is liable to pay GST on these courier charges. Participants debate whether the transaction falls under Section 12(2)(a) or 12(8) of the IGST Act. Some argue that the courier service is a supply of services, potentially qualifying as an export of services, while others highlight the distinction between goods and documents, affecting the GST applicability. The consensus leans towards GST liability under the relevant provisions.