Notification No. 04/2020 - Integrated Tax (Rate) Explained

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Notification No. 04/2020 - Integrated Tax (Rate): Extension of IGST exemption on services by way of transportation of goods by air or by sea from customs station of clearance in India to a place outside India, by one year i.e. up to 30.09.2021.

GST: [TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

G.S.R…..(E).- In exercise of the powers conferred by sub-section (3) and (4) of section 5, sub-section (1) of section 6 and clause (xxv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council,

Hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.9/2017- Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 684 (E), dated the 28th June, 2017, namely:-

In the said notification, in the Table, -

(i) against serial number 20A, in the entry in column (5), for the figures "2020", the figures "2021" shall be substituted;

(ii) against serial number 20B, in the entry in column (5), for the figures "2020", the figures "2021" shall be substituted;

2. This notification shall come into force with effect from the 1st day of October, 2020.

(Pramod Kumar)
Director to the
Government of India

Note: -The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 9/2017 Integrated Tax (Rate), dated the 28th June, 2017, vide number G.S.R. 684 (E), dated the 28th June, 2017 and was last amended by notification No. 27/2019- Integrated Tax (Rate), dated the 31st December, 2019 vide number G.S.R. 972 (E), dated the 31st December, 2019.

📚 Frequently Asked Questions (FAQs): Notification No. 04/2020 - Integrated Tax (Rate)

Q1: What exactly is Notification No. 04/2020 – Integrated Tax (Rate)?

Answer:
It extends IGST exemption on transportation of export goods by air or sea from India till 30.09.2021.
notfctn-04-2020-igst-rate-engli…

Q2: Which type of transport services are exempt?

Answer:
Only export freight: Customs station in India → Destination outside India ✈🚢

Q3: Is this exemption available for all types of exporters?

Answer:
Yes ✔
Applies to manufacturers, traders & merchant exporters.

Q4: Does this cover courier, postal, or domestic transport?

Answer:
❌ No. Only international carriage of goods by air/sea.

Q5: Is IGST exemption applicable on import freight?

Answer:
No ❌
Import freight rules remain unchanged.

Q6: Do I need GST registration to claim the benefit?

Answer:
If you export goods as a business, GST registration is required.
👉 https://finodha.in/online-gst-registration/

Q7: Do I need to reverse ITC due to exemption?

Answer:
No — zero-rated nature continues → ITC credits remain eligible 🧾

Q8: Should I report freight value in GSTR-1?

Answer:
Yes, for export service classification & audit trail.

Q9: Which documents are needed for exemption?

Answer:
Shipping Bill
Airway Bill / Bill of Lading
GST Invoice
LUT/Bond (if exporting without IGST)
👉 Finodha helps file LUT online: https://finodha.in/gst-compliance/

Q10: I paid IGST by mistake. Refund available?

Answer:
Yes ✔
Through RFD-01 refund process.

Q11: Can a foreign freight forwarder avail exemption?

Answer:
If they charge through an Indian registered entity, exemption applies.

Q12: Freight aggregator services included?

Answer:
✔ If they directly provide export transportation.
❌ Pure intermediary billing may differ → consult GST expert.

Q13: Where is this change reflected in notification table?

Answer:
Serial No. 20A & 20B — year changed from 2020 → 2021.
notfctn-04-2020-igst-rate-engli…

Q14: Is it linked with COVID relief measures?

Answer:
Yes — continuation of pandemic-related trade support 🛫🌍

Q15: How can Finodha help exporters?

Answer:
Finodha handles:
✔ Export LUT filing
✔ Shipping bill reconciliation
✔ GST refund support
✔ Zero-rated supply advisory
👉 https://finodha.in/gst-compliance/