Sir
FACTS OF THE CASE
Supplier of Service : ABC pvt ltd engaged in clearing and forwarding services (Registered in Delhi)
Recipient of Service : XYZ pvt ltd (Registered in Mumbai)
Nature of Service : Transportation of goods by Aircraft from US to Dubai.
Place of Supply as per section 12(8) : Place of destination of such goods {Proviso to section 12(8) inserted w.e.f 01st February 2020}
EXEMPTIONS IN GST
S.No. 20 – Services by way of transportation of goods by an aircraft from a place outside India upto the customs station of clearance in India
S.No. 20A – Services by way of transportation of goods by an aircraft from customs station of clearance in India to a place outside India. {Condition: Nothing contained in this serial number shall apply after the 30th day of September 2020.}
QUERY
Whether the transaction will be taxable to gst or it will be covered under S.No. 20 or S.No 20A. If yes, then IGST should be charged or CGST/SGST?
In our view as in this case the goods are being transported from US to Dubai , both places being outside India , GST exemptions in Sl. No 20 and 20A will not apply.
However as per proviso to Sec 12(8) of IGST Act the POS in this case will be outside India. However as recipient as well as supplier are located in India such service cannot be regarded as export of services and thus will be taxable.
As in instant case the Location of supplier is Delhi and POS is outside India, IGST will be applicable.
The above reply is based on prima facie examination of facts. For detailed legal opinion please write to clearmytax.in@gmail.com
Team Clearmytax.in