GST Update – Withdrawal of GST Applicability under RCM on Importer for specified International Transportation Services
by Rein Heads | Sep 23, 2023
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Withdrawal of GST Applicability under RCM on Importer for specified International Transportation Services
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Dear All,
As per the Notification Number 10/2017- Integrated Tax (Rate) dated 28 June 2017, the transactions entailing international goods transportation services through a vessel from a place outside India up to the Indian Customs port provided by a person located in a non-taxable territory to a person located in non-taxable territory was taxable under the reverse charge mechanism (RCM) in the hands of the Importer of goods at the rate of 5%.
Recently, the Central Government has excluded the aforesaid transaction from the ambit of GST w.e.f. 01 October 2023. The key changes in the relevant Notifications are summarized below:
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Amendment Notification
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Original Notification |
Changes
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| 11/2023-Integated Tax (Rate) |
08/2017- Integrated Tax (Rate) (‘The Rate Notification’) |
Removal of the entry from the Rate Notification that prescribed GST rate of 5% for the aforesaid transaction |
| 12/2023-Integated Tax (Rate) |
09/2017- Integrated Tax (Rate) (‘The Exemption Notification’) |
Amendment in the proviso to entry 10 of the Exemption Notification which restricted the exemption on the aforesaid transaction |
| 13/2023-Integated Tax (Rate) |
10/2017- Integrated Tax (Rate) (‘The RCM Notification’) |
Omission of the aforesaid transaction from the RCM Notification |
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