TaxTMI 
TaxTMI 
TaxTMI 
Packing services collected from Indian company by the overseas warehouse agent for materials supplied to overseas customers - Whether RCM to be paid
X X X X Extracts X X X X
X X X X Extracts X X X X
....acking services collected from Indian company by the overseas warehouse agent for materials supplied to overseas customers - Whether RCM to be paid<br> Query (Issue) Started By: - Balaji Srinivasamurthy Dated:- 27-9-2025 Last Reply Date:- 30-9-2025 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>Dear experts, The materials are exported from India and kept at a warehouse outside India (int....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ermediary 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 af....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ter the omission of Section 13(9) of IGST Act, however, request detailed insight on this matter. Reply By Balaji Srinivasamurthy: The Reply: Dear experts, I missed to mention in my previous query. The goods are supplied from the warehouse outside India to the customer outside India (however both are located nearby), can we presume the supply shall not be covered in the scope of supply as per Se....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ction 1 of both CGST Act and IGST Act and RCM provision does not apply? Reply By Sadanand Bulbule: The Reply: Where goods are exported from India, stored in a warehouse outside India, and supplied from that warehouse to an overseas customer: If the warehouse/packing agent raises invoice on the Indian exporter (i.e., Indian company is the recipient of service), then as per Section 2(11) of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... IGST Act read with Circular No. 203/15/2023-GST (27.10.2023), the place of supply is India (recipient's location). This amounts to import of services, and IGST is payable under RCM by the Indian company (ITC can be claimed, subject to eligibility). If the warehouse/packing service is contracted to / invoiced on the overseas buyer, then the recipient is outside India. Import of services test fail....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s, hence RCM does not apply. The onward supply of goods from the foreign warehouse to an overseas customer is also outside the scope of supply under GST law (as per Section 1 of CGST/IGST Acts, GST applies only within India). Key determinant: who is the "recipient" of the warehouse/packing service as per contract & invoice. Currency of payment is irrelevant; documentation decides whet....
X X X X Extracts X X X X
X X X X Extracts X X X X
....her RCM applies. Reply By Shilpi Jain: The Reply: Also refer section 13(3)(a) of the IGST Act in this regard to see if it is import of service. The goods sold abroad are by the Indian exporter? Ensure that your FEMA regulations and the aspects of issuance of GST invoice at the time of sale from warehouse are also complied with. Reply By KASTURI SETHI: The Reply: Sh. Sadanand Bulbule, Sir h....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as covered both situations in a perfect manner. Supplementary query stands covered nicely by Sh. Sadanand Bulbule, Sir in his reply at seral no. 2 Reply By Sadanand Bulbule: The Reply: Dear Sirji Kind of you for endorsing my opinion.<br> Discussion Forum - Knowledge Sharing ....