Latest GST Judgments

For Full Access To All Latest Judgments on GST
Click Here To Subscribe Now
Take a tour of our GST Library

In case the intermediary services are provided to the recipient located outside India, the inter-state provisions shall be applicable and hence IGST is payable under such transaction.

Levy of GST In the instant case, the applicant is providing services to its Principals at Germany, by way of procuring Purchase Orders (P. O.) from the parties in India who desire to purchase advanced type of Laboratory Equipment from their Principals.
The applicant, seeking an advance ruling in respect of the following issue.

(i) Whether the “Commission” received by the Applicant in convertible Foreign Exchange for rendering services as an “Intermediary” between an exporter abroad receiving such services and an Indian importer of an Equipment, is an “export of service” falling under Section 2(6) & outside the purview of section 13 (8) (b), attracting zero-rated tax under section 16 (1) (a) of the Integrated Goods and Services Tax Act, 2017?

(ii) If the answer to the Q (i) is in the negative, whether the impugned supply of service forming an integral part of the cross-border sale/purchase of goods, will be treated as an “intra-state supply” under section 8 (1) of the IGST Act read with section 2 (65) of the MGST Act attracting CGST/MGST? And, if so, at what rate?

Held that—
Since the applicant, being the supplier of service is located in India and the recipient of Service i.e. supplier of goods is located outside India, section 13 of the IGST Act, 2017 would be applicable to determine the place of service. As per section 13 (8) (b) of the said Act, the place of supply of Intermediary Services shall be the location of the supplier of services, in this case, the applicant. Since the place of supply of services in the instant case is in taxable territory, the said intermediary services cannot be treated as export of services under the provisions of the GST laws.
The said supply will be treated as Inter-State supply and not intra state supply and IGST will be levied @ 18%.—Vishakhar Prashant Bhave, Micro Instruments, In Re… [2018] 03 TAXLOK.COM 100 (AAR-Maharashtra)