We had given Luanda, Africa bound export shipment coordination assignment [ DDP shipment] to one Indian freight forwarder. They now raise Tax Invoice on us for charges eg Destination Handover BL, Container Terminal Charges+ Customs Duty reimbursement + Destination agency fees ALL AT DESTINATION PORT etc plus 9% CGST& SGST each under SAC 996519.
Could then charge GST for services rendered outside in foreign territory.
Kindly advise.
Jayanta Bandyopadhyay
It is simply reimbursement of customs duty paid at Africa by CHA on our behalf. They can legitimately charge for services. But GST on Customs duty reimbursement is somewhat unclear.
IT MUST BE EXEMPTED AS IT IS AN EXPENSE INCURRED IN CAPACITY OF PURE AGENT UNDER RULE 33 OF CGST ACT.
Freight Forwarder should charge GST on services provided. Reimbursement of Custom duty will not attract GST.
Regards
Chirag N Shah & Associates
Mumbai
CA Inter
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