POS - Services in relation to Transportation of goods (Where either the supplier or the recipient is located outside India) [ Section 13(9) of IGST Act ] - GST Ready Reckoner - GST

Determination of place of supply of s ervices in relation to Transportation of goods From the date 01.10.2023 section 13(9) of IGST Act , 2017 has been Omitted . Upto date 30.09.2023 - Services in relation to Transportation of goods [ Section 13(9) of IGST Act 2017 ] S. No. Nature of Supply of services Place of Supply 1 Transportation of goods, other than by way of mail or courier Destination of such goods Examples Example 1:- A consignment of cut flowers is consigned from Chennai to New York. cut flowers transported through by road . The place of supply of transportation services of goods shall be destination of goods i.e. New York (outside of India). Example 2:- PQ shipping Co. located in Germany charges ocean freight charges for transport of goods to Germany for a customer located in India. The place of supply of transportation of services of goods will be destination of goods outside India i.e. Germany. Example 3:- What would be the place of supply in respect of services pertaining to goods transportation, wherein either the supplier or recipient is located outside India? Ans. The place of supply of services of transportation of goods, other than by way of mail or courier, shall be the place of destination of such goods. ( Section 13(9) of IGST Act, 2017 ) For goods transportation via mail or courier, the default provision of Section 13(2) will apply i.e. place of supply will be the location of the recipient of service. [see Qus. no. 35 of FAQ] Relevant Important Point 1. Taxability regarding of satellite launch services ( Circular No. 2 / 1 / 2017 -IGST, 27th September 2017 . ) Taxability regarding of satellite launch services provided to both international and domestic customers by ANTRIX Corporation Limited which is a wholly owned Government of India Company under the administrative control of Department of Space (DOS). The place of supply of satellite launch services supplied by ANTRIX Corporation Limited to international customers would be outside India in terms of section 13(9) of IGST Act, 2017 and such supply which meets the requirements of export of services ( section 2(6) of IGST Act ), thus constitutes export of service and shall be zero rated in accordance with section 16 of th e IGST Act. Where satellite launch service is provided by ANTRIX Corporation Limited to a person located in India , the place of supply of satellite launch service would be governed by section 12 (8) of the IGST Act and would be taxable under CGST Act, UTGST Act or IGST Act , as the case may be. Whether the launch service provided by ANTRIX Corporation qualifies to be considered as export of services? In terms of Section 13(9) of IGST Act, 2017 , the place of supply of satellite launch service by ANTRIX Corporation to international customers would be outside India and wherever such supply qualifies all conditions specified under Section 2(6) of the IGST Act, 2017 , would constitute as export of service and shall be zero rated. Where satellite service was provided to a person in India, the place of supply of satellite launch service would be location of the recipient of services, provided the recipient is registered. In case where the recipient is not registered then place of supply is the place where such goods are handed over for their transportation. [ Refer FAQ Qus. no. 37 ] 2. Clarification regarding determination of place of supply in case of supply of service of transportation of goods, including through mail and courier After omitted section 13(9) of IGST Act [ Circular No. 203/15/2023-GST Dated 27.10.2023 ] The place of supply of services of transportation of goods, other than through mail and courier, in cases where location of supplier of services or location of recipient of services is outside India, will be determined by the default rule under section 13(2) of IGST Act and not as performance based services under section 13(3) of IGST Act . In cases where location of recipient of services is available , the place of supply of such services shall be the location of recipient of services and In cases where location of recipient of services is not available in the ordinary course of business, the place of supply shall be the location of supplier of services.