GST FOR THE PORT AGENCY SERVICE IN FOREIGN CLIENT

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GST on port agency services to foreign clients depends on the nature of services. If acting as an intermediary, 18% IGST applies as place of supply is India. If services are provided on own account as export of services under LUT, GST may not apply.

Denis Gonsalves

Denis Gonsalves (Querist)
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21 May 2026 We are supplying port agency services to a foreign owner at Indian ports. We are billing the owner in US dollars. We have already filed LUT. Currently, we are charging IGST on our invoices. Is this correct, or are any changes required?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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21 May 2026 Whether Port Agency Services qualify as an Export of Service (0% GST) or an Intermediary Service (18% GST) depends strictly on the nature of the contract. If the Indian agent acts as a facilitator or broker arranging third-party services for a foreign shipowner, the revenue department treats the agency commission as an Intermediary Service under Section 13(8)(b) of the IGST Act, making the Place of Supply India (Taxable). However, if the agent provides a unified composite suite of maritime support services on their own account directly to the foreign client, it falls under the default rule of Section 13(2). The Place of Supply is then located outside India, successfully qualifying the transaction as a Zero-Rated Export of Service, provided foreign currency remittance conditions are met.

Denis Gonsalves

Denis Gonsalves (Querist)
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22 May 2026 we are giving the port service in india port

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