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 determine whether clearing and handling charges are zero-rated exports or taxable domestic supplies.
Taxation of local clearing, handling and transport charges hinges on place of supply and recipient location: if the recipient is an Indian-registered person the supply is taxable domestically (CGST+SGST or IGST as applicable); if the recipient is located outside and payment is in foreign exchange the supply qualifies as export of services and is zero-rated, subject to export compliance. Characterisation of the service as transportation or a composite clearing/forwarding service and the rule determining where services are performed must be examined because that can change the tax treatment.