Dear Sir/Mam, As per Explanation 1(c) after Rule 43, the value of supply of services by way of transportation of goods by a vessel from the custom station of clearance in India to a place outside India is to be excluded from the aggregate value of exempt supplies.
Query-The above provision means that-
i) The Transporter (i.e. SHIPPING CO.) will NOT COLLECT GST FROM INDIAN EXPORTER on Transportation service given to INDIAN EXPORTER from Port & upto the destination . Am i right ??
ii) And Thus, the SHIPPING CO. will not collect GST & The Value of this service will not be TREATED AS EXEMPT SUPPLY IN THE HAND OF SHIPPING CO . Whether i am correct ??
2) So, Can Shipping company claim 100% ITC on Inputs/Capital goods ??
i) Being exempt supply, No GST will be charged.
ii) Yes.
2) If no other exempt supply and subject to fulfillment of other conditions , your statement is correct.
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