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

Reverse charge on imported services may not apply if the place of supply is outside India, despite recipient liability notices.
Whether reverse charge applies when an Indian freight forwarder procures services from a foreign forwarder and the place of supply is outside India. Advisers concluded RCM does not apply because the import of services concept requires the place of supply to be in India; the IGST notification on recipient liability allocates tax burden but does not create a levy where place of supply is outside India. A contrary view invoking place of supply rules to attract RCM was recorded.