XYZ(India) will be exporting the goods to PQR (U.K.). Before export, PQR wants XYZ to store the goods in India for about 2 months and then on their instructions export the same. The price charged for the supply of goods will be inclusive of storage charges. 1) Is XYZ liable to pay GST on the storage charges recovered which is built up in the price of the goods? 2) If the storage charges are recovered separately with a service invoice is XYZ liable to pay GST on it?
Frah Saeed Answered question August 22, 2020
- Storage charges being part of value of export, it will be subject to same treatment as that of the export.
- Even if recovered separately it is part of the composite supply of goods and subject to same treatment as that of value of supply of export of goods.
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Frah Saeed Answered question August 22, 2020