Quick Summary
The CBIC videCircular No. 184/16/2022-GST dated December 27, 2022has issued a clarification on the entitlement of input tax credit where the place of supply is determined in terms of the proviso to sub-section (8) of section 12 of the Integrated Goods and Services Tax Act, 2017 (the IGST Act). At
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FAQ :
The CBIC has clarified that if goods are transported to a place outside India, even if the supplier and recipient are in India, the place of supply is the foreign destination. Recipients in India can claim ITC on the IGST charged for these services, subject to other GST conditions.
The proviso applies when the transportation of goods, including by mail or courier, is to a place outside India. In such cases, the place of supply is considered the destination of the goods.
It is considered an inter-state supply because the supplier is located in India and the place of supply is outside India. Integrated tax (IGST) is chargeable on such services.
Yes, the recipient of such transportation services is eligible to avail input tax credit for the IGST charged, provided they meet the conditions outlined in sections 16 and 17 of the CGST Act.
Suppliers should report the place of supply as '96 - Foreign Country' using the dropdown menu available on the GST portal when filing FORM GSTR-1.
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