Under the Goods and Services Tax (GST) regime, international outbound freight (ocean and air freight) is considered as an export of services. As per the GST law, exports of goods or services are treated as zero-rated supplies, which means that no GST is levied on the export of such goods or services.
Therefore, if a registered taxpayer in India provides international outbound freight services (ocean or air freight) to a foreign recipient, the supply will be treated as an export of services and will be zero-rated for GST purposes. The taxpayer will not be required to charge GST on such supplies and can claim a refund of any GST paid on the input supplies used to provide such services.
To claim the refund, the taxpayer must file a refund application in Form GST RFD-01 within two years from the relevant date specified under the GST law. The refund application must be accompanied by the required supporting documents, such as invoices, shipping bills, and other export-related documents.
It is important for taxpayers to maintain proper records and documentation of their exports of services, including international outbound freight services, to ensure that they comply with the GST law and claim the applicable benefits.
To claim a refund of GST paid on the input supplies used for providing international outbound freight services, the registered taxpayer must file a refund application in Form GST RFD-01. The application must be accompanied by the following documents:
1. A statement containing the number and date of shipping bills or bills of export relating to the goods exported
2. A copy of the invoice issued by the registered taxpayer for the supply of services
3. A copy of the export order or agreement with the recipient of services
4. Evidence of payment received in convertible foreign exchange for the services
5. A declaration that the refund claim does not include any amount of tax or interest or any other amount which has been passed on to any other person
6. Any other document as may be required by the proper officer to verify the eligibility of the refund claim
It is important for the registered taxpayer to ensure that all the required documents are submitted along with the refund application to avoid any delay or rejection of the refund claim. The refund application must be filed within two years from the relevant date specified under the GST law.
Refund of GST paid on the input supplies used for providing domestic freight services is generally not available under the GST law, as such supplies are not treated as exports of services. However, a registered taxpayer may be eligible for a refund of GST paid on the input supplies used for providing services to a Special Economic Zone (SEZ) unit or developer.
To claim a refund of GST paid on the input supplies used for providing services to an SEZ unit or developer, the registered taxpayer must file a refund application in Form GST RFD-01. The application must be accompanied by the following documents:
1. A statement containing the number and date of invoices and the corresponding bank realisation certificates or foreign inward remittance certificates
2. A copy of the invoice issued by the registered taxpayer for the supply of services
3. Evidence of payment received in convertible foreign exchange for the services
4. A declaration that the refund claim does not include any amount of tax or interest or any other amount which has been passed on to any other person
5. Any other document as may be required by the proper officer to verify the eligibility of the refund claim
It is important for the registered taxpayer to ensure that all the required documents are submitted along with the refund application to avoid any delay or rejection of the refund claim. The refund application must be filed within two years from the relevant date specified under the GST law.
A: International outbound freight refers to the transportation of goods by air or sea from India to a foreign country.
A: No, GST is not levied on international outbound freight (ocean and air freight) as it is treated as an export of services and is zero-rated under the GST law.
A: Yes, a registered taxpayer can claim ITC on the input supplies used for providing international outbound freight services, subject to the conditions and restrictions specified under the GST law.
A: A registered taxpayer can claim a refund of GST paid on the input supplies used for providing international outbound freight services by filing a refund application in Form GST RFD-01 within two years from the relevant date specified under the GST law.
A: The refund application must be accompanied by the required supporting documents, such as invoices, shipping bills, and other export-related documents.
A: No, a registered taxpayer cannot claim a refund of GST paid on the input supplies used for providing domestic freight services, as they are not considered as exports of services under the GST law.
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