we are registered GTA services provider in WB, we will got a order from M/ S ABC company of Nepal from transpotation of matarials from India to Nepal. we will received payment from M/S ABC company.
now questions is what is the tax treatment of GST? what will be our invoice Pattan? is RCM applicable? what is the tax rate? Is ITC applicsble?what is the Place of supply?
Dear Anshuman
In term of Section 13(9) of IGST Act : POS is the destination of Goods. Hence in this case POS is Nepal .
Now as earlier issued Notification 43/2017 IGST (R) : Any supply of Services to Nepal against payment in Indian rupees is Exempted , but this notification was amended by Notification 2/2019 IGST (R) , by omission of Exemption , hence Now it's NOT Exempted.
In term of Section 2(6) of IGST Act , It's export services , the supplier is in India & Receptient is Outside India & POS is Outside India & the payment received in convertible foreign Exchange Or in Indian rupees wherever permitted by RBI.
Hence In my view It's Export of Services , so IGST is applicable . Can supply without payment tax by Furnish the LUT as prescribed in Circular 40/14/2018 GST .
No RCM is not applicable as Receptient is in Non Taxable Territory.
CAclubindia
