Invoice to exporter for local clearing charges - Whether to charge IGST or CGST+SGST?

[Balaji Srinivasamurthy]

Dear experts,

I humbly seek your opinion as to how the GST to be charged for the local clearing, handling and transport charges to the exporter in case of DAP (Delivered At Place) shipment - whether the forwarding agent to bill with CGST+SGST (since goods are delivered in India) is or IGST (since recipient of services is outside India)?

Many thanks in advance for your support!

Regards,

Balaji

AI Summary

Place-of-supply rules for forwarding agent charges under DAP: sec.13(2) vs specific transport provisions determine GST liability A forwarding agent's local clearing, handling and transport charges under a DAP shipment raise a place-of-supply issue: if the recipient is an Indian GST-registered exporter, tax applies (CGST+SGST or IGST as applicable); if the recipient is a foreign entity with payment in foreign currency, the supply may qualify as export of services and be zero-rated under LUT/bond. After October 2023 the default place-of-supply rule points to the recipient's location, but parties should still analyze whether the services fall within the specific transport/service provisions (which locate supply where services are performed); contract terms and the nature of services will determine whether sec.13(2) or the specific provision governs.