Availability of ITC In Case of Transportation of Goods Outside India

Circular No. 184/16/2022-GST Dated 27th December, 2022

Supply of services by way of transportation of goods, including by mail or courier where the transportation of goods is to place outside India and the recipient and the supplier are located in India: – Section 12(8) of the IGST provides the following: –

The place of supply of services by way of transportation of goods, including by mail or courier to: –

1. A registered person: – shall be the location of such registered person

2. A person other than registered person: – Place of supply shall be the place where the goods are handed over for transportation.

Proviso to section 12(8) provides that supply of services by way of transportation of goods is to a place outside India and where the recipient and supplier of service is located in India, the place of supply shall be the destination of goods i.e. the foreign destination of goods.

The services provided for transportation of goods outside India will be treated as inter-state supply of service and subsequently IGST would be chargeable.

Availability of Input Tax Credit by the recipient of service: – The recipient of service shall be eligible for the avail Input Tax Credit even if the place of supply of said service is outside India , subject to the fulfilment of conditions.

Reporting by the supplier of service: – The supplier shall report the place of supply of such service in GSTR 1 by selecting the State code “96 Foreign Country” from the list of codes.

Circular No. 184/16/2022-GST Dated 27th December, 2022 cir-184-16-2022-cgst