GST on SEA import?

What is SEA Import?

An import is decent brought into a purview, particularly over a national fringe, from an outer source. The gathering acquiring the great is called an importer.An import in the accepting nation is a fare from the sending nation. Importation and exportation are the characterizing money related exchanges of universal exchange.

In worldwide exchange, the importation and exportation of merchandise are constrained by import standards and orders from the traditions specialist. The bringing in and sending out locales may force a levy (impose) on the merchandise. Moreover, the importation and exportation of products are liable to exchange understandings between the bringing in and sending outwards.  There are many companies who do import-export very well in India and worldwide such as Falcon Freight, is one of the well-known in this field which always provide  full customer satisfaction to its client

Where’s the Place of Supply of ‘Transportation of goods’ services under the Model GST law?

The 'Place of Supply' Rules characterize that the place of supply of transportation of products administrations should be:

•the area of the beneficiary, if the beneficiary is a GST enlisted individual;

•If the beneficiary is an unregistered individual, the place of supply should be where the products are given over for transportation.

Considering the previously mentioned, it is basic to comprehend the different legs on exchange engaged with giving cargo transportation service.Basis the birthplace and goal of the transaction, analysis of every exchange from the perspective of GST are epitomized beneath:

Inward Shipments – Shipments Coming Into India

INWARD SHIPMENT
Type of Shipment	Legs of Transactions	Scope	Taxability Under Service Tax	Taxability Under GST
Delivered Duty Paid (‘DDP’) (Entire liability discharged by Consignor/ Seller)	a. Between Consignor and Overseas Agent (‘OA’)	Contract for delivery of goods from outside India to factory/ warehouse of consignee in India	No service tax since the Consignor and OA are located outside India	Not taxable since both parties are located outside India
	b. Between OA and Indian Freight Forwarder (‘Indian FF’)	Contract to perform the Indian leg of shipment, on behalf of OA and not the Consignor or Consignee	Service tax chargeable under Rule-10 of Place of Provision Rules, 2012 (‘POPS’)	2Taxable(refer note below)
Ex-Works (‘EXW’) (Entire liability discharged by Consignee/ Buyer)	a. Between Consignee and Indian FF	Contract for delivery of goods from outside India to factory/ warehouse of consignee in India	Service tax chargeable under Rule 10 of POPS, including the amount of inward ocean freight	Taxable under Rule 9 of proposed Place of Supply Rules
	b. Between Indian FF and OA	Contract to perform the origin leg of transaction in the foreign country on behalf of FF and not the Consignor or Consignee	Service tax payable under RCM by FF, as per Rule 10 of POPS	Taxable under Rule 9 of proposed Place of Supply Rules. Tax liability to be discharged under Reverse Charge Mechanism (‘RCM’)
Cost-Insurance-Freight (‘CIF’) (Liability of Consignor to deliver the goods till Indian port i.e. port of importation)	a. Between the Consignor and Foreign Freight Forwarder (‘Foreign FF’)	Contract to deliver goods till the port of importation (India), including respective clearance and freight charges	No service tax payable, since Consignor and Foreign FF located outside India	Not taxable since both parties are located outside India
	b. Between Consignee and Indian FF	Contract for transportation of goods from domestic port to the factory/ warehouse of consignee	Service tax chargeable on entire consideration under Rule10 of POPS	Taxable under Rule 9 of proposed Place of Supply Rules
Free-on-Board (‘FOB’) (Liability of Consignor to deliver the goods till Foreign port i.e. port of exportation)	a. Between Consignor and Foreign FF	Contract to deliver goods till the port of exportation	No service tax payable, since Consignor and Foreign FF located outside India	Not taxable since both parties are located outside India
	b. Between Consignee and Indian FF	Contract for transportation of goods from foreign port to factory/warehouse of consignee, including clearance and freight charges	Service tax chargeable on entire consideration, including ocean freight, under Rule-10 of POPS	Taxable under Rule 9 of proposed Place of Supply Rules

Outward Shipments – Shipments Going From India

OUTWARD SHIPMENT
Type Of Shipment	Legs Of Transactions	Scope	Taxability Under Service Tax	Taxability Under GST
Delivered Duty Paid (‘DDP’) (Entire liability discharged by Consignor/ Seller)	c. Between Consignor and IndianFF	Contract for delivery of goods from India to factory/warehouse of consignee outside India	No service tax payable as per Rule-10 of POPS, since destination of goods is outside India	Taxable under Rule 9 of proposed Place of Supply Rules
	d. Between Indian FF and OA	Contract to perform the foreign leg of shipment, on behalf of FF and not the Consignor or Consignee	No service tax chargeable under Rule-10 of POPS	Taxable under Rule 9 of proposed Place of Supply Rules. Tax liability to be discharged under RCM
Ex-Works (‘EXW’) (Entire liability discharged by Consignee/ Buyer)	c. Between Consignee and OA	Contract for delivery of goods from India to factory/warehouse of consignee outside India	No service tax payable, since Consignee and OA located outside India	Not taxable since both parties are located outside India
	d. Between OA and Indian FF	Contract to perform the origin leg of transaction in India on behalf of OA and not the Consignor or Consignee	Services performed in India for Foreign FF, would not attract service tax. As per Rule 10 of POPS this transaction would qualify as export of service	2Taxable (refer note below)
Cost-insurance-Freight (‘CIF’) (Liability of Consignor to deliver the goods till foreign port i.e. port of importation)	c. Between the Consignor and Indian FF	Contract to deliver goods till the foreign port of importation, including respective clearance and freight charges	No service tax chargeable under Rule-10 of POPS	Taxable under Rule 9 of proposed Place of Supply Rules
	d. Between Consignee and Foreign FF	Contract for transportation of goods from foreign port to the factory/warehouse of consignee	No service tax payable, since Consignor and Foreign FF located outside India	Not taxable since both parties are located outside India
Free-on-Board (‘FOB’) (Liability of Consignor to deliver the goods till Indian port i.e. port of exportation)	c. Between Consignor andIndian FF	Contract to deliver goods till the port of exportation (India)	No service tax chargeable under Rule-10 of POPS.	Taxable under Rule 9 of proposed Place of Supply Rules
	d. Between Consignee andForeign FF	Contract for transportation of goods from Indian port to factory/warehouse of consignee, including clearance and freight charges	No service tax payable since Consignor and FF located outside India	Not taxable since both parties are located outside India

In regard to exchange performed by Indian FF for the benefit of OA, the administrations are given to a non-inhabitant substance which would be considered as a non-enrolled element. In like manner, the place of supply of administration for unregistered substance will be an area where the merchandise is given over for transportation i.e. India, gave the air/sea cargo is paid by the OA. Hence, such exchange would be liable to GST.

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