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GTA services to Nepal/Bhutan


Anshuman Basu (account -GST)     26 February 2020

Anshuman Basu
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we are registered GTA services provider in WB, we will got a order from M/ S ABC company of Nepal from transpotation of matarials from India to Nepal. we will received payment from M/S ABC company.
now questions is what is the tax treatment of GST? what will be our invoice Pattan? is RCM applicable? what is the tax rate? Is ITC applicsble?what is the Place of supply?

avater

Pankaj Rawat (GST Practitioner)     26 February 2020

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Dear Anshuman

In term of Section 13(9) of IGST Act : POS is the destination of Goods. Hence in this case POS is Nepal .

Now as earlier issued Notification 43/2017 IGST (R) : Any supply of Services to Nepal against payment in Indian rupees is Exempted , but this notification was amended by Notification 2/2019 IGST (R) , by omission of Exemption , hence Now it's NOT Exempted.

In term of Section 2(6) of IGST Act , It's export services , the supplier is in India & Receptient is Outside India & POS is Outside India & the payment received in convertible foreign Exchange Or in Indian rupees wherever permitted by RBI.

Hence In my view It's Export of Services , so IGST is applicable . Can supply without payment tax by Furnish the LUT as prescribed in Circular 40/14/2018 GST .

No RCM is not applicable as Receptient is in Non Taxable Territory.

Anshuman Basu (account -GST)     27 February 2020

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Sir with due respect our local CA said  it is taxable ,He said

With effect from 01.02.2019, Section 12 (8) of IT Act has been amended by inserting a proviso which is reproduced hereunder; “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

 

 In the explanatory notes given CBIC to explain the reasons for the amendments, with respect to insertion of proviso to section 12(8), it has been explained that the amendment is proposed to provide that the services provided for transport of goods from a place in India to a place outside India would not be chargeable to GST, as POS is outside India.

Sir we are confused 

Anshuman Basu (account -GST)     27 February 2020

Anshuman Basu
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Sir we are not very much famalier about foreign service. We are registered GTA services provider.we areconfused about different view of CA/Lawer

We are want to know is I charge Gst or not? We this is very important to learn us because we are going to start foreign service by road

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Pankaj Rawat (GST Practitioner)     27 February 2020

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in my view also its taxable & consider as export services.

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Pankaj Rawat (GST Practitioner)     27 February 2020

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Dear Anshuman 

There are 2 conditCon : 

1.When GTA reced payments & bill raised to supplier in India & goods are delivered out of India : As you mentioned the provsio inserted by Amendment Act 2018 & the provsio get effective by issued Notification 1/2019 IGST. In this situation The GTA is liable to Issue bill by Charging IGST therein even if the Supplier & GTA are in same State.

2. When GTA Reced payment from Receptient Out of India to whom the Goods being delivered: In this case the Section 13(9) is invoke & cover Under the Export Services.(As already replied above)

 

 

 

Anshuman Basu (account -GST)     27 February 2020

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Pankaj jii your answer is so easy and simple to that we understand. sir may I get your e mail id

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Pankaj Rawat (GST Practitioner)     28 February 2020

Pankaj Rawat
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Thanks dear
My E-Mail ID
pankajdeeprawat @ gmail.com


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