Very Important announcement made in 49th GST Council meeting pertaining to services of transportation of goods
The GST Council has proposed to change the place of supply of services related to transportation of goods where the supplier or recipient of such service is outside India. Currently, the place of supply of such services (except via mail or courier) is determined as per the destination of such goods. Interestingly, the Council has proposed deletion of this specific provision. It would logically follow that these services should now be governed by the default rule of determining the place of supply of cross border services (location of recipient). Businesses engaged in the cross border trade and logistics industry will need to closely evaluate the implications of this proposed amendment on the supply chain.