Place of supply: Outside India

[Sunish Ahuja]

Good evening, I have a question and would need your expertise on it to assist my doubts.

Now the scenario is:

A: Indian Freight Forwarder

B: Freight Forwarder Outside India

C: Indian Exporter

D: Buyer based outside India

C (Indian exporter) used A (Indian forwarder's) services to deliver this goods to D (buyer) who is based outside India.

A being an Indian entity, used B (Forwarder outside India) services like Customs clearance outside India, on carriage (door delivery) etc outside India, and charged A for its services.

Place of supply of such services is outside India, however B charged A for its services, and A charged C in Indian rupees + GST.

Now, the question is: is A liable to pay for GST under reverse charge under GST rules?

Regards

Sunish

AI Summary

GST Not Applicable Under Reverse Charge for Freight Forwarder Services Outside India, Clarifies Sowmya CA An Indian exporter (C) uses the services of an Indian freight forwarder (A) to deliver goods to a buyer outside India (D). A, in turn, employs a foreign freight forwarder (B) for services outside India. The query revolves around whether A is liable for GST under reverse charge mechanism (RCM) since B charges A for services, and A charges C in Indian rupees plus GST. Sowmya CA clarifies that GST under RCM is not applicable as the place of supply is outside India, and there is no import of services. Further discussion involves Notification 10/2017 and its implications.