Dear Sir, X Ltd sold goods to Y Ltd of Nepal. X Ltd paid Freight to GTA. What will be the Place of supply in this case for GTA service ??
2) I think that Place of supply is Nepal, & then it is Export of service & hence GST should NOT BE PAID UNDER RCM by X Ltd ?? Do you agree ?? Pls clarify ….
As per proviso to Sec 12(8) of the CGST Act, 2017, where the transportation of goods is to a place outside India, the POS shall be the place of destination of such goods.
However as in this case the recipient of GTA service viz X Ltd (person liable to pay / who has paid freight) is located in India, the clause (ii) of Sec 2(6) of the IGST Act will not be fulfilled and thus it will not be regarded as export of service and thus would be subject to payment of tax under RCM by X Ltd.
I suggest that in this case the transporter should be engaged and paid by Y Ltd and in such a case it will be export of service by GTA.
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