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    Entitlement of ITC where the place of supply is determined in terms of section 12(8) of the IGST Act, 2017

    Published Mon, 02 Jan 2023 | Updated Mon, 02 Jan 2023

    Section 12(8) of the IGST Act, 2017 provides for the place of supply of services by way of transportation of goods, including by mail or courier, where location of the supplier as well as the recipient of services is in India. As per clause (a) of the aforesaid sub-section, the place of supply of services by way of transportation of goods, including by mail or courier, to a registered person shall be the location of such registered person. Further, it provides that where the transportation of goods is to a place outside India, the place of supply of the said service shall be the place of destination of such goods

     

    Since certain doubts were raised in case of supply of services by way of transportation of goods, including by mail or courier, where the transportation of goods is to a place outside India, and where the supplier and recipient of the said supply of services are located in India, the circular has clarified the following:

    • Where the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods
    • Aforesaid supply of services would be considered as inter-State supply
    • Input tax credit is available to the recipient located in India subject to Sections 16 and 17 of the CGST Act
    • The supplier of service shall report place of supply selecting State code as ‘96- Foreign Country’ from the list of codes in the drop-down menu available on the portal in FORM GSTR-1 where the transportation of goods is to a place outside India.