GST on Courier Service

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This query is : Resolved

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This discussion clarifies the Goods and Services Tax (GST) implications for courier services, specifically when sending parcels outside India. Initially, there was confusion about whether CGST/SGST or IGST should apply. However, it was confirmed that for international courier shipments, IGST is correctly charged by the courier partner. This is because, as per the IGST Act, the place of supply is considered the destination outside India, making IGST the applicable tax.

Pradeep Sharma

Pradeep Sharma (Querist)

05 August 2020 Hi,
We send courier through blue dart courier.
our blue dart is registered in Delhi and we also registered in Delhi. In these terms CGST & SGST applicable on us.
we send a courier to poland and our courier partner charges IGST in bill.
We talk with us and he is says we charge IGST on international courier.
Is this is right to charge to IGST
We can not understand how to claim IGST in our books.

Please help and confirm about this

CA Anita Bhadra

CA Anita Bhadra (Expert)

05 August 2020 For courier outside India, the place of supply of services shall be the location of the recipient of services. He should not be charging IGST.

Lekhraj sood

Lekhraj sood (Expert)

06 August 2020 As per proviso inserted in section 12(8) of the IGST Act w.e.f. 01.02.2019, the courier is right in charging IGST because the place of supply is outside India and the supplier (courier is in India). Please see the proviso below-
"Provided that where the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods."

Lekhraj sood

Lekhraj sood (Expert)