GST ON CLEARING AND FORWARDING CHARGES

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This query is : Resolved

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This discussion clarifies the correct Goods and Services Tax (GST) application on clearing and forwarding charges for exported goods. When both the exporter and the clearing and forwarding agent are registered in the same state, the agent should charge CGST and SGST, not IGST. This ensures the correct tax jurisdiction is applied.

NIRMAL DAVE

NIRMAL DAVE (Querist)
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01 December 2022 Dear All,

We export our manufactured goods to certain country and pay clearing and forwarding charges and ocean freight for the same. Our Clearing and forwarding agent charges IGST on the same in spite of we both have registered office in the same state.

I want to know whether IGST charged by agent is correct as per law or he shall charge CGST and SGST instead of charging IGST?

Thanks
Nirmal