Notification No. 30/2017 - Central Tax (Rate) Explained

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Notification No. 30/2017 - Central Tax (Rate): Exempting supply of services associated with transit cargo to Nepal and Bhutan.

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 (1) of section 11 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.12/2017- Central 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. 691(E), dated the 28th June, 2017, namely:-

In the said notification, in the Table, after serial number 9A and the entries relating thereto, the following shall be inserted, namely: -

(1)	(2)	(3)	(4)	(5)
“9B	Chapter 99	Supply of services associated with transit cargo to Nepal and Bhutan (landlocked countries).	Nil	Nil”.

(Ruchi Bisht)
Under Secretary to the
Government of India

Note: - The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 12/2017 - Central Tax (Rate), dated the 28th June, 2017, vide number G.S.R. 691 (E), dated the 28th June, 2017 and was last amended by notification No. 25/2017 - Central Tax (Rate), dated the 21^st September, 2017 vide number G.S.R. 1180 (E), dated the 21^st September, 2017.

📚 Frequently Asked Questions (FAQs): Notification No. 30/2017 – Central Tax (Rate)

Q1: Is GST applicable on transit cargo services to Nepal?

Answer: No, GST is not applicable.
As per Notification 30/2017, services related to transit cargo to Nepal are exempt. However, the service must be directly linked to such cargo, and proper documentation should be maintained to prove the nature of transaction.

Q2: Does this exemption apply to Bhutan also?

Answer: Yes, it applies to both Nepal and Bhutan.
Both countries are landlocked and rely on Indian transit routes, so the exemption covers services related to cargo movement to both nations.

Q3: What is meant by transit cargo?

Answer: Transit cargo refers to goods passing through India.
These goods are not meant for use or sale in India but are transported through India to another country like Nepal or Bhutan.

Q4: Are all logistics services exempt?

Answer: No, only specific services are exempt.
The exemption applies only when services are directly associated with transit cargo. Regular domestic logistics services are still taxable.

Q5: Is documentation required for claiming exemption?

Answer: Yes, documentation is crucial.
Without proper proof showing that goods are meant for Nepal/Bhutan, GST authorities may deny the exemption.

Q6: Can a transporter claim this exemption?

Answer: Yes, if conditions are met.
Transporters providing services directly linked to transit cargo can avail exemption under this notification.

Q7: What if goods are partially used in India?

Answer: GST will apply.
If goods are consumed or diverted in India, the exemption will not be available.

Q8: Is this considered export under GST?

Answer: No, it is not export.
This is transit movement, not export, so it is treated differently under GST law.

Q9: Can GST be charged by mistake?

Answer: Yes, and it happens often.
Many businesses incorrectly charge GST due to confusion. In such cases, correction or refund may be needed.

Q10: Does this apply to warehousing services?

Answer: Yes, if linked to transit cargo.
If warehousing is part of the transit process, it may qualify for exemption.

Q11: Is this exemption still active?

Answer: Yes, it is currently active.
There have been no major changes removing this exemption.

Q12: Which notification originally contains exemptions?

Answer: Notification 12/2017.
Notification 30/2017 only amends it by adding a new entry.

Q13: Who issues such GST notifications?

Answer: The government based on GST Council recommendations.
Notifications are issued by CBIC under powers of the CGST Act.

Q14: Do small businesses need to worry about this?

Answer: Only if dealing with cross-border logistics.
Otherwise, this notification may not impact regular businesses.

Q15: Can professionals help in such cases?

Answer: Yes, and it’s often useful.
Many businesses prefer expert help for GST compliance to avoid errors and notices.

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