Question ID :
44468
GST Tax Liability on forwarding agent
ABC Ltd is a forwarding agent and is taking tanks on rental to export the chemicals of XYZ Ltd. To take those tanks on rental ABC Ltd has three choices to deal with which are as below –
1. Whether ABC Ltd takes tanks on rent from PQR Ltd, a registered Indian company. In this case at what rate PQR Ltd will charge GST to ABC Ltd?
2. Whether ABC Ltd takes tanks on rent from DEF Pte Ltd registered company in Singapore with no permanent place of business in India. As its import of services, Will ABC Ltd be liable to pay GST on reverse charge mechanism (RCM) being the import of service and if yes then at what rate?
3. Whether ABC Ltd takes tanks on rent from PQR Pte Ltd registered company in Singapore with the place of business in India also but payments are being made to Singapore registered company and invoice is being made by PQR Pte Ltd. In such case who will charge GST at what rate?
Posted by
PRATIK M DUGAR
on
Apr 15, 2023
Filed Under
GST
1. From PQR Ltd (India): GST @18% forward charge (CGST+SGST/IGST depending on location).
2. From DEF Pte Ltd (Singapore, no India presence): ABC Ltd pays GST @18% IGST under RCM.
3. From PQR Pte Ltd (Singapore with India office): If Indian office bills ? GST @18% forward charge; if Singapore entity bills ? ABC Ltd pays IGST @18% under RCM.
Posted by
Gaurav Arya on
Aug 30, 2025