Dear Sir, We paid GST on overseas courier services. Courier Agency charged IGST due to place of supply is out of India. Can we take ITC on overseas courier charges however agency shown place of supply “97” instead of “08” in GSTR-2A. Can we are eligible for ITC?

Reply— Yes, ITC of overseas courier charges is allowed, it is not restricted; taxpayer is eligible to claim such ITC.

As per section 12(8) of IGST Act, place of supply changed from location of recipient to destination of goods, if the transportation is to a place outside India; Following proviso inserted. (Refer THE INTEGRATED GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018 effective from 01.02.2019) 

Provided that where the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods. Therefore place of supply for overseas courier service will be destination of goods and will not be location of recipient of courier service.