S.No.

Situation

Place of Supply of services and IGST /CGST payable by

Relevant Provisions

1

Indian importer of goods hiring vessel on Time charter basis from foreign supplier for transportation of goods to India

IGST is payable on hiring charges by Importer under reverse charge as a recipient of service

Place of supply of services of Hiring of Vessels / aircrafts irrespective of time period, is covered under default section 13(2) i.e. the location of recipient of service.

When vessel itself is hired, there would not be separate freight component hence IGST will be payable on total value of supply i.e. hiring charges. However one may argue that there is also IGST liability on Importer who files bill of entry showing notional freight component in BOE and pays customs duty on such goods. Therefore Deptt may demand IGST from importer on reverse charge basis under Sec 13 (9) read with Notfn No 10/2017-IGST as the supplier of service is situated outside India.

2

Indian importer of goods hiring vessel on Time charter basis from Indian supplier for transportation of goods to India

IGST is payable on hiring charges by Indian supplier / shipping company on forward charge basis

Place of supply of services for Hiring of Vessels is the location of supplier as per sec 13 (8) of IGST Act which is India in this case

Since both the supplier of service and recipient of service are situated in India, the reverse charge mechanism under Notfn No 10/2017 is not applicable for payment of IGST by Importer on so called freight charges shown in BOE.

Moreover the service provider is not providing "transportation of goods" service but he is providing "hiring / supply of tangible goods " service hence section 13(9) is not applicable.

3

Indian importer hiring vessel on Voyage charter basis from foreign supplier for a transportation of goods to India

Shipping company providing transportation of goods services to Indian importer, hence IGST is payable on freight component by Indian importer under reverse charge basis, POS being destination of goods

Section 13 (9) of IGST Act, 2017 read with Notfn. No.10/2017-IGST (Rate)

4

An Indian importer engaging a foreign airlines for transport of goods from outside India to India (Import freight)

IGST is exempted

Section 13 (9) of IGST Act, 2017 read with Notfn No 12/2017-Central Tax (rate) and Notfn No 9/2017-IGST (Rate)

5

A foreign supplier engaging foreign airlines for transport of goods from outside India to India (Import freight)

IGST is exempted

Recipient of service and provider of service are situated outside India hence GST is not applicable.

Moreover Transportation of goods through Aircraft is exempted under Notfn No 12/2017-CT(Rate) and Notfn No 9/2017-IGST(Rate

6

A foreign supplier engaging an Indian shipping company for transport of goods from outside India to India (Import freight)

Place of supply of service is destination of goods and hence IGST is payable by Importer under reverse charge method

.

Section 13 (9) of IGST Act, 2017 read with Notfn No 10/2017-IGST (Rate)

7

An Indian importer engaging a foreign shipping company for transport of goods from outside India to India (Import freight)

Place of supply of service would be the destination of goods, and appropriate IGST is payable under reverse charge basis by importer

Section 13 (9) of IGST Act, 2017 read with Notfn No 10/2017-IGST.

8

Overseas Company engages an Indian freight forwarder to move import goods from say Dubai to Indian port

Indian Importer has to discharge IGST under reverse charge mechanism for ocean freight

Section 13 (9) of IGST Act, 2017 read with Notfn No 10/2017-IGST (Rate)

9

Overseas Company engages a Foreign freight forwarder to move import goods from say Dubai to Indian port on CIF basis.

IGST is payable by Importer under reverse charge mechanism

Although both recipient of service and provider of service are situated outside India, IGST is payable by Importer under reverse charge as per Notfn No 10/2017-IGST(Rate) read with Corrigendum dated 30.06.2017 to the Notfn No 8/2017-IGST (Rate)

10

Goods landed into Indian Customs port for transshipment to other outside country destination

GST not payable as the destination of goods is outside India

Section 13 (9) of IGST Act, 2017.

Also refer clarification issued by CBEC under Service Tax regime

S.No.

Situation

Place of Supply under IGST and IGST payable by

Relevant provisions.

1

An Indian exporter engaging a foreign shipping company / airlines for transport of goods from India to outside India

The place of supply of services of transportation of goods, shall be the place of destination of such goods. So, when a Foreign based Shipping line is engaged by an Indian Exporter, IGST is not payable as the place of supply is outside India.

Section 13 (9) of IGST Act, 2017

2

A foreign customer engaging a shipping company / airlines (whether Indian registered or foreign) for transport of goods from India to outside India

Not taxable as Place of provision of service is destination of goods, which is outside India.

Section 13 (9) of IGST Act, 2017.

3

Indian company engages foreign vessel/ freight forwarder to transport goods from Dubai port to Singapore port

GST is not payable on freight as the destination of goods is outside India

Section 13 (9) of IGST Act, 2017.

S.No.

Situation

Place of Supply under IGST and IGST payable by

Relevant provisions

1

When an Indian Shipping line is engaged by an Indian Exporter for export of goods

IGST is payable by Indian Shipping line on such freight as the place of supply is the location of the registered person

Section 12 (8) (a) of IGST Act, 2017.

2

Indian Company engages an Indian freight forwarder to move goods from say Dubai to Singapore.

Indian freight forwarder has to charge GST to the Indian Company on freight (Inspite of the fact that these goods do not enter or exit India's territorial boundary) as the POS is location of registered person

Section 12 (8) (a) of IGST Act, 2017.

3

Indian importer engages Indian shipping line for transportation of goods from abroad to India

IGST is payable by Indian importer on such freight under reverse charge basis

Section 12 (8) (a) of IGST Act, 2017 read with Notfn No 10/2017-IGST (Rate)

4

Indian importer hiring Vessel on Time charter basis from Indian Ship Owner / shipping line for import of goods into India

GST is payable by Indian service provider registered in India on hiring charges

Section 12 (8) (a) of IGST Act, 2017

5

Indian exporter hiring Vessel on Time charter basis from Indian Ship Owner / shipping line for export of goods outside India

GST is payable by Indian service provider registered in India on hiring charges

Section 12 (8) (a) of IGST Act, 2017

S.No.

Situation

Place of Supply under IGST and IGST payable by

Relevant provisions

1

When an Indian Airline is engaged by an Indian Exporter for export of goods

IGST is payable by Indian Airline on such freight as the place of supply is the location of the registered person

Section 12 (8) (a) of IGST Act, 2017.

Exemption for transportation of goods through Aircraft under Notfn No 12/2017-CT(rate) and 9/2017-IGST (rate) is limited to Import of goods into India

2

Indian Company engages an Indian freight forwarder to move goods from say Dubai to Singapore.

Indian freight forwarder has to charge IGST to the Indian Company (Inspite of the fact that these goods do not enter or exit India's territorial boundary) as the location of service provider is in India

Section 12 (8) (a) of IGST Act, 2017.

3

Indian importer engages Air line from India for transportation of goods from abroad to India

IGST is exempted

Section 12 (8) (a) of IGST Act, 2017.

Read with exemption Notfn 12/2017-CT (Rate) and Notfn No 9/2017-IGST (Rate)

S.No.

Category of Supply of Services.

Supplier of Service

Recipient of Service.

1

Any service supplied by any person who is located in a non-taxable territory to any person other than non-taxable online recipient.

Any person located in a non-taxable territory

Any person located in the taxable territory other than non-taxable online recipient

10

Services supplied by a person located in non- taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India

A person located in nontaxable territory

Importer, as defined in clause (26) of section 2 of the Customs Act, 1962(52 of 1962), located in the taxable territory.

S.No.

Chapter, Section, Heading, Group or Service Code (Tariff)

Description of Services

Rate (Per cent)

Condition.

19

Heading 9965

Services by way of transportation of goods by an aircraft from a place outside India upto the customs station of clearance in India

NIL

NIL

S.No.

Chapter, Section, Heading, Group or Service Code (Tariff)

Description of Services

Rate (Per cent)

Condition.

20

Heading 9965

Services by way of transportation of goods by an aircraft from a place outside India upto the customs station of clearance in India.

NIL

NIL

S.No.

Chapter, Section or Heading

Description of Service

Rate

Condition.

9

Heading 9965 (Goods transport services)

(ii) Transport of goods in a vessel including services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India.

5

Provided that credit of input tax charged on goods (other than on ships, vessels including bulk carriers and tankers) used in supplying the service has not been taken Explanation: This condition will not apply where the supplier of service is located in nontaxable territory. [Please refer to Explanation no. (iv) to this Notification].