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Can we avail IGST credit on courier

sreedhara sredhara (37 Points)

28 September 2019

hi
DHL charged IGST for Export service
can we avail IGST input credit . both DHL and we in Karnataka

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8 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14599 Points)
Replied 28 September 2019

You mean to say your courier has been sent out of India by DHL Courier Services and both of you are registered under GST in Karnataka . DHL Charge you IGST the Same service . please clarify .

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CA Haritha Komma (Chartered Accountant) (1147 Points)
Replied 28 September 2019

Yes. can avail credit on courier charges used for export..

Rishu ranjan Kumar (2 Points)
Replied 28 September 2019

What is intrastate and interstate in different

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 29 September 2019

No you cannot .........avail ITC

prasad Nilugal ( GST Practitioner & Accounts ) (14599 Points)
Replied 29 September 2019

@ pankaj Rawat , @ Komma

As per section 12(8) (a) of the IGST act 2017 The place of supply by way of courier to a registered person , shall be a location of such person even though courier is out side India , In above case both are registered in Karnataka (Intra state transaction ) , so CGST & SGST should have been charged .

Your opinion , please .

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 29 September 2019

Dear Prasad

First of All in above case DHL cannot charge CGST /SGST .

As per the proviso inserted in Amendment Act 32 of 2018 , & the same was effective by Notification 1/2019 IGST Act "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 the Courier company is liable to charge IGST , even though the sender (Supplier) is same state , & you cant avail ITC on same .

But ..... In this regard, we can hope clarification from the Board otherwise there will be problem regarding determination of place of supply which may further create confusion in availing ITC whether on CGST/SGST or IGST. Sooner the clarification, less the problems for assessees.

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prasad Nilugal ( GST Practitioner & Accounts ) (14599 Points)
Replied 30 September 2019

@ PanKaj -

Amendment in section 12 as per the Amendment Act 32/2018 and Notification 1/2019 is for Transportation of Goods and not for Courier service . I mean to say is same amendment is applicable to Courier service also. ?. Because service is provided by DHL as you can see in the query and not Goods .

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 30 September 2019

Dear Parsad Transporation of Goods is cover under Services & its obvious the export of goods by courier service wala or transporter both are tranporting Goods