We want to start one courier movements from Hongkong to Various countries as attached with Sell rate and Number of shipments.
Now my Hongkong agent will proceed these couriers and bill to me in India and i will bill to Indian company (shipper)
Basically this is Merchant export movements
Requirements :
1.Need to know whether gst will be applicable while billing to Indian company, Hongkong agent will not charge me any tax for it.
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
