A company is providing transportation services from Hong Kong to USA to a client who has one of its office in Mumbai and billing for the same is to be done in Mumbai itself.
What is the place of supply and how GST will be charged? Whether it will be export of services?
What difference will it make if instead of transportation of goods company provides courier service from Hong Kong to USA?
In your Query there is 2 set of Transaction is involved:
1. Between You & Hongkong courier Company .
2. Between You & Indian Company.
Note : You are in Taxable territory (India)
Now let's take First Condition.
As per Section 13(9) of IGST Act Read with sub-Section (2) , "The POS of transportation of Goods , Other Than by way of MAIL OR COURIER, shall be the destination of Goods . here its specifically mention, if it is Not Courier Services, then in this case the subsection (2) of 13 of IGST will triggered . So for courier services POS will be location of Receptient (YOU).
Hence in term of Definition for Import Services provided in Section 2(11) , it's IMPORT OF SERVICES. (Do the RCM )
Note : It's not merchant export
Now come to your 2Nd condition : As per provisio under Section 12(8) : transportation of Goods is to a place Outside India , the POS shall be the Place of Destination of Goods . Hence as You are the supplier for Indian company , you are liable charge IGST on your bill to Indian company (Even though Indian company & you are in same state)
CAclubindia
