Query on Customs House Agents a

[Akshay Sharma]

Hello Members, thank you for your response in Advance.

A CHA Code is being used on a Bill of Entry as on date. The GSTIN associated with this CHA code has been cancelled in the year 2021(A). As per CBLR Regulations the CHA License cannot be transferred or Sublet to another person. However, an another Firm registered (B) under GST is raising tax invoice for providing services of Clearing and Forwarding to the Importer/Exporter as on date. I want to know who will be the actual service provider as per GST Act, A or B. Further, A is liable to Pay GST or Not? If yes on what charges should he discharge GST Liability. Also if this is some regular practice in customs kindly elaborate on this issue

AI Summary

GST liability falls on actual supplier who performs service and invoices; cancelled registrant cannot lawfully charge GST A CHA code appears on a bill of entry though the CHA's GST registration was cancelled in 2021 and CHA licences are non-transferable; another GST-registered firm is issuing invoices for clearing and forwarding services. The tribunal in the forum concluded the actual supplier is the entity that performs the service, issues the invoice and receives consideration - here the currently GST-registered firm - which must discharge GST (typically 18% under the clearing/forwarding SAC). The cancelled-registrant cannot validly issue invoices or collect GST and therefore bears no GST liability.