Intermediary services supplied from India to an overseas client are not export of services and attract IGST.

Marketing and consultancy services supplied by an India-based applicant to an overseas principal were treated as intermediary services, not export of services, because the services were rendered in India to facilitate supplies to customers in India. The deemed place of supply for intermediary services remained the supplier's location in India, so the statutory condition that the place of supply be outside India for export treatment was not met. Receipt of consideration in convertible foreign exchange did not change the character of the supply. The services were therefore liable to IGST as intermediary services.

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Issues: Whether marketing and consultancy services supplied to an overseas client constituted export of services or intermediary services.

Analysis: The applicant was located in India and received commission-based consideration from a foreign principal, but the services were rendered in India to facilitate supply of goods to customers in India. Since the place of supply of intermediary services is deemed to be the location of the supplier, the condition that the place of supply be outside India for export of services was not satisfied. Receipt of payment in convertible foreign exchange did not alter the character of the supply.

Conclusion: The services were not export of services. They were intermediary services liable to IGST.

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