GST on transportation outside india, Goods and Services Tax - GST

[Madhavan iyengar]

A Company based in Gujrat has engaged a transporter to transport goods from gujarat to nepal goods will be transported to nepal ie outside india the transporter has charged IGST

Issues:

Is GST to be paid on RCM by the Company in gujarat for transportation charges paid to the indian transporter

Posts / Replies

[Ganeshan Kalyani]

CGST + SGST is applicable.

[Madhavan iyengar]

Sir

Thanks for your views

further points

Since transportation is to destination outside India why should tax be applicable as per IGST Act sec 13(8) where destination of goods is outside India Place of supply will be outside India kindly clarify

[KASTURI SETHI]

Dear Sir,

(i) Inter-State (de fecto, inter-nation) supply has taken place. This is an undisputed fact. Hence IGST is applicable. IGST

(ii) Consignee is outside country i.e. in non-taxable territory. Hence consignee is out of RCM.

(iii) Now what remains left is that is to be analyzed. Liability is either on Consignor or GTA.

(iv) First Liability (preference) is cast upon consignor under RCM and thereafter GTA.

In this case GTA is free. Consignor must pay IGST.

[Ramesh Kothari]

It's clearcut that material is Transport outside India hence no question of applicability of GST