TaxTMI 
TaxTMI 
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.
GST on Courier charges
21 Oct 2021 
8 Replies 
6485 Views Asked by
Place of supply determines whether courier charges for sending documents abroad attract GST as export of services.
Whether GST applies to courier charges recovered by a freight forwarder for sending a client's documents abroad depends on the place of supply and whether the forwarder is an intermediary. If the forwarder merely pays a courier and recharges the client, the courier service is the operative supply and GST follows that service; if the place of supply is the destination outside India, the service may qualify as export of services, whereas if the place of supply is where documents are handed over in India, domestic GST rules apply. (AI Summary)
Whether GST applies to courier charges recovered by a freight forwarder for sending a client's documents abroad depends on the place of supply and whether the forwarder is an intermediary. If the forwarder merely pays a courier and recharges the client, the courier service is the operative supply and GST follows that service; if the place of supply is the destination outside India, the service may qualify as export of services, whereas if the place of supply is where documents are handed over in India, domestic GST rules apply. (AI Summary)