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Invoice to exporter for local clearing charges - Whether to charge IGST or CGST+SGST?
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....nvoice to exporter for local clearing charges - Whether to charge IGST or CGST+SGST?<br> Query (Issue) Started By: - Balaji Srinivasamurthy Dated:- 21-8-2025 Last Reply Date:- 25-8-2025 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>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 DA....
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....P (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 Reply By Sadanand Bulbule: The Reply: If you raise invoice to Indian exporter (GSTIN in India) ? charge GST (CGST+SGST or IGST as applicable). If you raise....
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.... invoice to a foreign buyer/exporter (outside India) with payment in foreign currency ? it is Export of Service (zero-rated) ? no GST (supply covered under LUT/Bond). Reference: Sec. 2(6), Sec. 12 & 13 of IGST Act, 2017; CBIC Circular No. 159/15/2021-GST. Reply By Balaji Srinivasamurthy: The Reply: Respected sir, Many thanks for your reply! May I seek further input on the below... Considerin....
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....g the Notification 28/2023-CT dt 31.07.2023 read with Section 162 of the Finance Act 2023, is it correct to say that, in case of transportation of goods other than by mail or courier, the place of supply would be covered under the default provision of Section 13(2) instead of Section 13(9) of IGST Act, which is location of the recipient of service? In this case, the exporter (as per DAP incoterm)....
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.... being the recipient of service and location of the delivery of goods (to the consignee within India), can the supplier of service (i.e., the forwarding agent) raise the invoice with IGST to the exporter in foreign currency? Reply By Sadanand Bulbule: The Reply: After 01.10.2023 (Notification 28/2023-CT), Section stands 13(9) omitted. So place of supply for goods transport falls Sec. 13(2), i.e.....
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.... location of recipient. * If recipient is Indian exporter (GSTIN in India) ? GST payable (CGST+SGST/IGST). * If recipient is foreign entity (outside India, forex payment) ? qualifies as export of service, zero-rated (no GST). Reply By Shilpi Jain: The Reply: In your query I see that the recipient is outside India. Though the services are clearing handling and transportation. O....
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....ne needs to first see if all of this can be regarded merely as transportation services? This requires analysis of section 13(3) of IGST Act as well to identify the place of supply keeping in mind the actual transaction and agreement. Reply By Balaji Srinivasamurthy: The Reply: Respected madam, Many thanks for your reply! The agreement is for engagement of both clearing and forwarding of goods....
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.... from an Indian port to the customers factory in India (cannot be regarded as transportation services as such). However, as mentioned in my previous messages, as per DAP term, the exporter to bear the cost until the goods are delivered to the factory of the customer. I am quite perplexed whether general provision of Section 13(2) will apply or whether we need to invoke provision of Section 13(3) ....
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....of IGST Act. Firstly, taking the case of Section 13(3), POS shall be the location where the services are actually performed, which is done in India and in this case CGST+SGST to be billed to the exporter. On the other hand, if Section 13(2) is applied, POS is the location of the recipient, where invoice to be raised to exporter with IGST/ zero-rated (LUT). I seek an opinion to clear this ambigui....
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....ty. Reply By Balaji Srinivasamurthy: The Reply: Dear experts, Requesting your valuable opinion on this matter please...<br> Discussion Forum - Knowledge Sharing ....