Clearing and forwarding Agent service under GST

Outward Shipments – Shipments Going From India
S.No
     Contract
Contract Type
Rate
Scope
Entire liability discharged by Consignor/ Seller
Between Consignor and Indian FF
Contract for delivery of goods from India to factory/warehouse of consignee outside India
Transport of goods in a vessel-5%
Supply shall be liable for GST.POS shall be the place of recipient.
All services ancillary to transportation- loading, unloading, handling etc.) are “bundled” with the principal service owing to a single contract or a single price (consideration).
Between Indian FF and OA
Contract to perform the foreign leg of shipment, on behalf of OA and not the Consignor or Consignee
Not a Export
GST will be liable. The place of supply shall be the destination of goods.
All services ancillary to transportation- loading, unloading, handling etc.) are “bundled” with the principal service owing to a single contract or a single price (consideration).
Entire liability discharged by Consignee/ Buyer
Between Consignee and OA
Contract for delivery of goods from India to factory/warehouse of consignee outside India
No cover in GST
No GST payable, since Consignee and OA located outside India
Between OA and Indian FF
Contract for delivery of goods from India to factory/warehouse of consignee outside India
Export
No GST. The place of supply shall be the location of destination of goods.
Foreign leg shipment is discharged by Consignee/ Buyer
Between Consignor and Indian FF
Contract for delivery of goods from India to factory/warehouse of consignee outside India
Transport of goods in a vessel-5%
The person who is liable for payment of consideration shall be the “recipient” i.e. Consignor
Inward Shipments – Shipments coming in India
S.No
Contract Type
Recipient
Rate
Scope
1
Outside Factory to India
India
Transport of goods in a vessel-5%
Transport of goods service to outside India, to an Indian recipient shall be liable for GST in India. The place of supply shall be the destination of goods if the recipient is registered person.
All services ancillary to transportation- loading, unloading, handling etc.) are “bundled” with the principal service owing to a single contract or a single price (consideration).
2
Outside Factory to India
Outside India
Transport of goods in a vessel-5%
The service shall be treated as export of service. The place of supply shall be the location of destination of goods i.e India.
All services ancillary to transportation- loading, unloading, handling etc.) are “bundled” with the principal service owing to a single contract or a single price (consideration).
 Reverse charge on Input service
S.No
Contract Type
Provider of service
Rate
Scope
1
Transport of goods by GTA in India
India
18%
GTA Service
2
Transport of goods by vessel
Outside India
5%
Transport of goods in a vessel
3
Service by unregistered person
India
18%
Other service
Outward Shipments – Shipments Going From India
OUTWARD SHIPMENT
Type Of Shipment
Legs Of Transactions
Scope
Tax ability Under Service Tax
Tax-ability Under GST
Delivered Duty Paid (‘DDP’)(Entire liability discharged by Consignor/ Seller)
c. Between Consignor and IndianFF
Contract for delivery of goods from India to factory/warehouse of consignee outside India
No service tax payable as per Rule-10 of POPS, since destination of goods is outside India
Taxable under Rule 9 of proposed Place of Supply Rules
d. Between Indian FF and OA
Contract to perform the foreign leg of shipment, on behalf of FF and not the Consignor or Consignee
No service tax chargeable under Rule-10 of POPS
Taxable under Rule 9 of proposed Place of Supply Rules. Tax liability to be discharged under RCM
Ex-Works (‘EXW’)
(Entire liability discharged by Consignee/ Buyer)
c. Between Consignee and OA
Contract for delivery of goods from India to factory/warehouse of consignee outside India
No service tax payable, since Consignee and OA located outside India
Not taxable since both parties are located outside India
d. Between OA and Indian FF
Contract to perform the origin leg of transaction in India on behalf of OA and not the Consignor or Consignee
Services performed in India for Foreign FF, would not attract service tax. As per Rule 10 of POPS this transaction would qualify as export of service
2Taxable (refer note below)
Cost-insurance-Freight (‘CIF’)(Liability of Consignor to deliver the goods till foreign port i.e. port of importation)
c. Between the Consignor and Indian FF
Contract to deliver goods till the foreign port of importation, including respective clearance and freight charges
No service tax chargeable under Rule-10 of POPS
Taxable under Rule 9 of proposed Place of Supply Rules
d. Between Consignee and Foreign FF
Contract for transportation of goods from foreign port to the factory/warehouse of consignee
No service tax payable, since Consignor and Foreign FF located outside India
Not taxable since both parties are located outside India
Free-on-Board (‘FOB’)(Liability of Consignor to deliver the goods till Indian port i.e. port of exportation)
c. Between Consignor andIndian FF
Contract to deliver goods till the port of exportation (India)
No service tax chargeable under Rule-10 of POPS.
Taxable under Rule 9 of proposed Place of Supply Rules
d. Between Consignee andForeign FF
Contract for transportation of goods from Indian port to factory/warehouse of consignee, including clearance and freight charges
No service tax payable since Consignor and FF located outside India
Not taxable since both parties are located outside India
Inward Shipments – Shipments Coming Into India
INWARD SHIPMENT
Type of Shipment
Legs of Transactions
Scope
Taxability Under Service Tax
Taxability Under GST
Delivered Duty Paid (‘DDP’)
(Entire liability discharged by Consignor/ Seller)
a. Between Consignor and Overseas Agent (‘OA’)
Contract for delivery of goods from outside India to factory/ warehouse of consignee in India
No service tax since the Consignor and OA are located outside India
Not taxable since both parties are located outside India
b. Between OA and Indian Freight Forwarder (‘Indian FF’)
Contract to perform the Indian leg of shipment, on behalf of OA and not the Consignor or Consignee
Service tax chargeable under Rule-10 of Place of Provision Rules, 2012 (‘POPS’)
2Taxable(refer note below)
Ex-Works (‘EXW’)
(Entire liability discharged by Consignee/ Buyer)
a. Between Consignee and Indian FF
Contract for delivery of goods from outside India to factory/ warehouse of consignee in India
Service tax chargeable under Rule 10 of POPS, including the amount of inward ocean freight
Taxable under Rule 9 of proposed Place of Supply Rules
b. Between Indian FF and OA
Contract to perform the origin leg of transaction in the foreign country on behalf of FF and not the Consignor or Consignee
Service tax payable under RCM by FF, as per Rule 10 of POPS
Taxable under Rule 9 of proposed Place of Supply Rules. Tax liability to be discharged under Reverse Charge Mechanism (‘RCM’)
Cost-Insurance-Freight (‘CIF’)
(Liability of Consignor to deliver the goods till Indian port i.e. port of importation)
a. Between the Consignor and Foreign Freight Forwarder (‘Foreign FF’)
Contract to deliver goods till the port of importation (India), including respective clearance and freight charges
No service tax payable, since Consignor and Foreign FF located outside India
Not taxable since both parties are located outside India
b. Between Consignee and Indian FF
Contract for transportation of goods from domestic port to the factory/ warehouse of consignee
Service tax chargeable on entire consideration under Rule10 of POPS
Taxable under Rule 9 of proposed Place of Supply Rules
Free-on-Board (‘FOB’)
(Liability of Consignor to deliver the goods till Foreign port i.e. port of exportation)
a. Between Consignor and Foreign FF
Contract to deliver goods till the port of exportation
No service tax payable, since Consignor and Foreign FF located outside India
Not taxable since both parties are located outside India
b. Between Consignee and Indian FF
Contract for transportation of goods from foreign port to factory/warehouse of consignee, including clearance and freight charges
Service tax chargeable on entire consideration, including ocean freight, under Rule-10 of POPS
Taxable under Rule 9 of proposed Place of Supply Rules

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