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TMI BlogClarification 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, 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... Services Tax Act, 2017 (hereinafter referred to as IGST Act ) which provides for the place of supply of services by way of transportation of goods, including by mail or courier, where location of the supplier as well as the recipient of services is in India. As per clause (a) of the aforesaid sub-section, the place of supply of services by way of transportation of goods, including by mail or courier, to a registered person shall be the location of such registered person. However, the proviso to the aforesaid sub-section which was inserted vide the Integrated Goods and Services Tax (Amendment) Act, 2018 with effect from. February 1, 2019 provides that where the transportation of goods is to a place outside India, the place of supply of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upplier and the recipient are located in India, is determined in terms of sub-section (8) of section 12 of the IGST Act which reads as follows : 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. Hence, in case of supply of services by way of transportation of goods, including by mail or courier, where the transportation of goods is to a place outside India, and where the supplier and recipient of the said supply of services are located in India, the place of supply is the concerned foreign destination where the goods are being transported, in accordance with the proviso to the sub-section (8) of section 12 of the IGST Act, which was inserted vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions for taking input tax credit whereas, section 17 of the HGST Act provides for apportionment of credit and blocked credits under circumstances specified therein. The said provisions of law do not restrict availment of input-tax credit by the recipient located in India if the place of supply of the said input service is outside India. Thus, the recipient of service of transportation of goods shall be eligible to avail input tax credit in respect of the IGST so charged by the supplier, subject to the fulfilment of other conditions laid down in sections 16 and 17 of the HGST Act. In the illustration given in Sl. No. 1 above, X would be eligible to take input tax credit of IGST in respect of supply of services received by him from Z, subjec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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