Packing services collected from Indian company by the overseas warehouse agent for materials supplied to overseas customers - Whether RCM to be paid

[Balaji Srinivasamurthy]

Dear experts,

The materials are exported from India and kept at a warehouse outside India (intermediary services). The materials are supplied locally from the warehouse to the overseas customer. Whether GST to be paid under RCM or not, if the warehouse agent collects the packing charges from the Indian company in foreign currency? I referred Section 2(11) of IGST Act for the definition of Import of Services and Circular No. 203/15/2023-GST dated 27.10.2023 where the department clarified after the omission of Section 13(9) of IGST Act, however, request detailed insight on this matter.

AI Summary

Import of services triggers IGST under RCM when warehouse agent invoices the Indian recipient; invoicing to overseas buyer avoids RCM.
RCM applies if the overseas warehouse/packing agent invoices the Indian exporter, because the place of supply is India under import-of-services rules and IGST is payable under reverse charge by the Indian company; if the service is invoiced to the overseas buyer (recipient outside India) the import test fails and RCM does not apply. Currency of payment is irrelevant; contractual documentation and invoicing determine the recipient for place-of-supply and GST treatment.