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RCM on import of service of transportation

Krishna (Employee) (59 Points)

07 January 2022

we have taken service of foreign transporter for transport of goods from that country to another foreign country. the goods we are transporting is of our Indian customer and we are providing them service of transportation of their goods from one country to another country and for that we have taken service of foreign transport company. is RCM applicable on the service charge paid by us to foreign transport company?

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anil jain (Partner) (1072 Points)
Replied 07 January 2022

SCHEDULE III. (of CGST Act)

[ See section 7]

ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES

^{clause 7 -1}[Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India.

Thus in my opinion freight is not taxable.

However if u pay merely service charge then it is taxable under RCM on import of service.