Services of transportation of goods :
The place of supply of services of transportation of goods, other than by way of mail or courier, shall be the place of destination of the goods – section 13(9) of IGST Act.
Illustration – A consignment of cut flowers is consigned from Chennai to Amsterdam. The place of supply of goods transportation service will be Amsterdam (outside India, hence not liable to IGST). Conversely, if a consignment of crystal ware is consigned from Paris to New Delhi, the place of provision will be New Delhi.
No GST on transhipment of goods at customs station in India for further transport out of India – In case of goods in customs station in India intended for transhipment to any country outside India, the destination is not India. Hence, place of provision of service is not India, as per rule 10 of Place of Provision of Service Rules. Thus, service tax on ocean freight will not be payable in case of transhipment of goods in customs station in India for onward transport outside India – CBE&C circular No. 204/2/2017-ST dated 16-2-2017 [clarification in respect of service tax but applies to GST also].