The CBIC vide Notification No. 4/2020- Central Tax (Rate) dated September 30, 2020 has amended Notification No. 12/2017- Central Tax (Rate) dated June 28, 2017 i.e. GST exemption Notification for Services, to extend the exemption of export freight i.e. services by way of transportation of goods by an aircraft/ vessel from customs station of clearance in India to a place outside India for the period till September 30, 2021.
The impact of this Notification is that no GST shall be applicable on the ocean freight or air fare paid for transportation of goods by an aircraft/ vessel from customs station of clearance in India to a place outside India. This will come as relief for the exporter of goods.
It may be noted here that currently such exemption was valid till September, 30, 2020 and this extension of one more year in the exemption has come on the last day.
For ready reference of our readers the entry No. 19A and 19B of the Notification No. 12/2017- Central Tax (Rate) dated June 28, 2017 ( as amended) now reads as under:
| Sl. No. | Heading | Description of Services | Rate (percent.) | Condition |
| 19A | Heading 9965 | Services by way of transportation of goods by an aircraft from customs station of clearance in India to a place outside India. | Nil | Nothing contained in this serial number shall apply after the 30th day of September 2021 |
| 19B | Heading 9965 | Services by way of transportation of goods by a vessel from customs station of clearance in India to a place outside India. | Nil | Nothing contained in this serial number shall apply after the 30th day of September, 2021 |
This notification shall come into force with effect from October 1, 2020.
Similar notification has been issued under IGST Act, 2017 vide Notification No. 04/2020- Integrated Tax (Rate) dated September, 30, 2020. Similarly Notification has been issued under UTGST Act / SGST Act(s) as well for continuation of exemption of GST on export freight till September, 30, 2021.
READ / DOWNLOAD CGST NOTIFICATION:
READ / DOWNLOAD IGST NOTIFICATION:
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