Home GST New RCM for Indian Exporters w.e.f. 01/10/23

New RCM for Indian Exporters w.e.f. 01/10/23

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New RCM for Indian Exporters w.e.f. 01/10/23

New RCM for Indian Exporters w.e.f. 01/10/23

The Central Authorities has notified the New RCM (Reverse Cost Mechanism) for Indian exporters with respect to the export of products and companies.

The Finance Act, 2023 dated 31-03-2023 w.e.f. 01-10-2023 had omitted sub-section (9) of Part 13 of the IGST Act, 2017.

The Part reads as:

13(9) The place of provide of companies of transportation of products, apart from by the use of mail or courier, shall be the place of vacation spot of such items.

As an impact of which:

The Place of Provide (POS) of companies of transportation of products, apart from by the use of mail or courier, shall now not be the place of vacation spot of such items.

Now, the POS could be “the situation of the recipient of companies”, by way of Part 13(2) of the mentioned Act.

Part 13(2) reads as:

13(2) The place of provide of companies besides the companies laid out in sub-sections (3) to (13) shall be the situation of the recipient of companies:

Offered that the place the situation of the recipient of companies shouldn’t be out there within the strange course of enterprise, the place of provide shall be the situation of the provider of companies.

Due to this fact, if an Indian exporter, export items by means of a overseas delivery line, now, w.e.f. 01-10-2023 the POS could be the situation of the Indian Exporter and accordingly, RCM could be relevant on the mentioned transaction.

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