umang garg asked 6 years ago
Effect of IGST Amendment Act 2018 On Courier Service
Effect of IGST Amendment Act 2018 On Courier Service:
Effect of IGST Amendment Act 2018 On Courier Service.As per IGST Amendment Act under Section 12(8) a new proviso added “Provided that where the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods”.
And now Place of Supply for Outside India Courier Service to a domestic registered person is outside India . and as per section 7 of IGST Act IGST to be liable in this situation .
And this service does not fall under Export of Service because Service Recipient is in India.
My Question is that
1.) What is the Purpose of this amendment ?
2.) How this B2B transaction will be shown in GSTR-1 , Because in GSTR-1 there is no option of other country as place of supply?
3.) Whether Service recipient of courier service is eligible to take ITC when place of supply is different from his registered State ?Â
ConsultEase Administrator answered 6 years ago
This is very interesting question. The amendment was inserted to provide the benefit of zero rating to frieght for export of goods. But the amendment was without proper analysis. The definition of Export of services in IGST Act is not referred. The export of service needs to fulfill 5 conditions. One of those conditions is that the recipient of service should be located outside India. In case of frieght for goods movement from exporter’s place to port of export is located in India. It will still not fall in export of service. Even it is creating confusion in taxpayers.
ConsultEase Administrator answered 6 years ago
This is very interesting question. The amendment was inserted to provide the benefit of zero rating to frieght for export of goods. But the amendment was without proper analysis. The definition of Export of services in IGST Act is not referred. The export of service needs to fulfill 5 conditions. One of those conditions is that the recipient of service should be located outside India. In case of frieght for goods movement from exporter’s place to port of export is located in India. It will still not fall in export of service. Even it is creating confusion in taxpayers.
ConsultEase Administrator answered 6 years ago
This is very interesting question. The amendment was inserted to provide the benefit of zero rating to frieght for export of goods. But the amendment was without proper analysis. The definition of Export of services in IGST Act is not referred. The export of service needs to fulfil 5 conditions. One of those conditions is that the recipient of service should be located outside India. In case of freight for goods movement from exporter’s place to port of export is located in India. It will still not fall in export of service. Even it is creating confusion in taxpayers.
ConsultEase Administrator answered 6 years ago
This is very interesting question. The amendment was inserted to provide the benefit of zero rating to freight for export of goods. But the amendment was without proper analysis. The definition of Export of services in IGST Act is not referred. The export of service needs to fulfil 5 conditions. One of those conditions is that the recipient of service should be located outside India. In case of freight for goods movement from exporter’s place to port of export is located in India. It will still not fall in export of service. Even it is creating confusion in taxpayers.
ConsultEase Administrator answered 6 years ago
This is very interesting question. The amendment was inserted to provide the benefit of zero rating to freight for export of goods. But the amendment was without proper analysis. The definition of Export of services in IGST Act is not referred. The export of service needs to fulfil 5 conditions. One of those conditions is that the recipient of service should be located outside India. In case of freight for goods movement from exporter’s place to port of export is located in India. It will still not fall in export of service. Even it is creating confusion in taxpayers.
ConsultEase Administrator answered 6 years ago
This is very interesting question. The amendment was inserted to provide the benefit of zero rating to freight for export of goods. But the amendment was without proper analysis. The definition of Export of services in IGST Act is not referred. The export of service needs to fulfil 5 conditions. One of those conditions is that the recipient of service should be located outside India. In case of freight for goods movement from exporter’s place to port of export is located in India. It will still not fall in export of service. Even it is creating confusion in taxpayers.
ConsultEase Administrator answered 6 years ago
This is very interesting question. The amendment was inserted to provide the benefit of zero rating to freight for export of goods. But the amendment was without proper analysis. The definition of Export of services in IGST Act is not referred. The export of service needs to fulfil 5 conditions. One of those conditions is that the recipient of service should be located outside India. In case of freight for goods movement from exporter’s place to port of export is located in India. It will still not fall in export of service. Even it is creating confusion in taxpayers.
ConsultEase Administrator answered 6 years ago
This is very interesting question. The amendment was inserted to provide the benefit of zero rating to freight for export of goods. But the amendment was without proper analysis. The definition of Export of services in IGST Act is not referred. The export of service needs to fulfil 5 conditions. One of those conditions is that the recipient of service should be located outside India. In case of freight for goods movement from exporter’s place to port of export is located in India. It will still not fall in export of service. Even it is creating confusion in taxpayers.
ConsultEase Administrator answered 6 years ago
This is very interesting question. The amendment was inserted to provide the benefit of zero rating to freight for export of goods. But the amendment was without proper analysis. The definition of Export of services in IGST Act is not referred. The export of service needs to fulfil 5 conditions. One of those conditions is that the recipient of service should be located outside India. In case of freight for goods movement from exporter’s place to port of export is located in India. It will still not fall in export of service. Even it is creating confusion in taxpayers.
ConsultEase Administrator answered 6 years ago
This is very interesting question. The amendment was inserted to provide the benefit of zero rating to freight for export of goods. But the amendment was without proper analysis. The definition of Export of services in IGST Act is not referred. The export of service needs to fulfil 5 conditions. One of those conditions is that the recipient of service should be located outside India. In case of freight for goods movement from exporter’s place to port of export is located in India. It will still not fall in export of service. Even it is creating confusion in taxpayers.
ConsultEase Administrator answered 6 years ago
This is very interesting question. The amendment was inserted to provide the benefit of zero rating to freight for export of goods. But the amendment was without proper analysis. The definition of Export of services in IGST Act is not referred. The export of service needs to fulfil 5 conditions. One of those conditions is that the recipient of service should be located outside India. In case of freight for goods movement from exporter’s place to port of export is located in India. It will still not fall in export of service. Even it is creating confusion in taxpayers.
ConsultEase Administrator answered 6 years ago
This is very interesting question. The amendment was inserted to provide the benefit of zero rating to freight for export of goods. But the amendment was without proper analysis. The definition of Export of services in IGST Act is not referred. The export of service needs to fulfil 5 conditions. One of those conditions is that the recipient of service should be located outside India. In case of freight for goods movement from exporter’s place to port of export is located in India. It will still not fall in export of service. Even it is creating confusion in taxpayers.
ConsultEase Administrator answered 6 years ago
This is very interesting question. The amendment was inserted to provide the benefit of zero rating to freight for export of goods. But the amendment was without proper analysis. The definition of Export of services in IGST Act is not referred. The export of service needs to fulfil 5 conditions. One of those conditions is that the recipient of service should be located outside India. In case of freight for goods movement from exporter’s place to port of export is located in India. It will still not fall in export of service. Even it is creating confusion in taxpayers.
ConsultEase Administrator answered 6 years ago
This is very interesting question. The amendment was inserted to provide the benefit of zero rating to freight for export of goods. But the amendment was without proper analysis. The definition of Export of services in IGST Act is not referred. The export of service needs to fulfil 5 conditions. One of those conditions is that the recipient of service should be located outside India. In case of freight for goods movement from exporter’s place to port of export is located in India. It will still not fall in export of service. Even it is creating confusion in taxpayers.
ConsultEase Administrator answered 6 years ago
This is very interesting question. The amendment was inserted to provide the benefit of zero rating to freight for export of goods. But the amendment was without proper analysis. The definition of Export of services in IGST Act is not referred. The export of service needs to fulfil 5 conditions. One of those conditions is that the recipient of service should be located outside India. In case of freight for goods movement from exporter’s place to port of export is located in India. It will still not fall in export of service. Even it is creating confusion in taxpayers.
