Jayanta Bandyopadhyay (310 Points)
03 May 2023We had given Luanda, Africa bound export shipment coordination assignment [ DDP shipment] to one Indian freight forwarder. They now raise Tax Invoice on us for charges eg Destination Handover BL, Container Terminal Charges+ Customs Duty reimbursement + Destination agency fees ALL AT DESTINATION PORT etc plus 9% CGST& SGST each under SAC 996519.
Could then charge GST for services rendered outside in foreign territory.
Kindly advise.
Jayanta Bandyopadhyay
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 03 May 2023
Jayanta Bandyopadhyay
(310 Points)
Replied 04 May 2023
It is simply reimbursement of customs duty paid at Africa by CHA on our behalf. They can legitimately charge for services. But GST on Customs duty reimbursement is somewhat unclear.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 04 May 2023
IT MUST BE EXEMPTED AS IT IS AN EXPENSE INCURRED IN CAPACITY OF PURE AGENT UNDER RULE 33 OF CGST ACT.
CA SANDESH MAHIPAL
(Practicing in GST and MSME )
(1985 Points)
Replied 04 May 2023
Freight Forwarder should charge GST on services provided. Reimbursement of Custom duty will not attract GST.
Regards
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