I have a query where one Indian company is serving a foreign company as an agent for procuring goods from overseas and selling the goods to India, the outgoing payment and incoming payment is effected to the foreign company and the Indian company is charging services in respect to the buying and selling arrangement.
Is the Indian company liable to charge gst on such services or not since the service is export oriented being served to a foreign entity in foreign currency without any value addition of the goods in India or anywhere.
Indian Company Must Charge GST on Intermediary Services Under IGST Act; Services Deemed Supplied in India An Indian company acting as an agent for a foreign company is facilitating the procurement and sale of goods from overseas to India. The query revolves around whether the Indian company should charge GST on its services, given that the service is export-oriented, paid in foreign currency, and involves no value addition in India. Multiple experts in the forum assert that the service is taxable under GST, citing provisions of the IGST Act, which define the place of supply for intermediary services as the location of the supplier, i.e., India. Consequently, the service does not qualify as an export and is subject to GST. (AI Summary)
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