Question

The change in section 12(8) of IGST Act has shifted the place of supply in case of export to place of destination of goods. The section part is as under `The place of supply of services by way of transportation of goods, including by mail or courier to,`` (a) a registered person, shall be the location of such person; (b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation. Provided that where the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods.` My question is that my client is sub-broker-courier of DHL has he to charge IGST to his customer from 1st Feb 2019. DHL is charging him IGST since 1st Feb 2019.

Answer
 

Point 1: Recognizing the supply
This is supply of service being Transportation of Goods.

Point 2: Deciding POS
As per 12(8) POS for deliveries within India is Location of recipient (assuming registered recipient).
SGST+CGST or IGST will be applicable as per the facts.

POS for deliveries outside India is Destination of goods i.e Place outside.

Point 3: Is this Export ?
As per 2(6) of IGST

'export of services' means the supply of any service when,''
(i) the supplier of service is located in India;
(ii) the recipient of service is located outside India;
(iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange and
(v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8;

Since conditions(ii) and (iv) listed above are failing therefore this is not export.

Conclusion: POS and service provider and are in different states therefore this is interstate supply thus IGST is levied. (Reply dt.09/03/2019)