GST applicability for Services provided to Japanese Company

[Sudhir Shah]

I have GST registered firm Shah International - doing activity in India for Japanese company viz. Promoting their product, generating inquiry from India customers, India customer place order and payment directly to Japanese company - Japanese company directly supply goods to customer in India.

Managing their agents( motivating, controlling) in India, if required technical support to customer, I am providing.

Should I prepare Tax invoice to Japanese company with IGST? OR it is Export of Services without Payment (under LUT).

Kindly advise.

Thanks & Regards,

Sudhir Shah

[Alkesh Jani]

Sir, Please refer issue ID 113435

[CSSANJAY MALHOTRA]

Your service appears to be more of Commission Agent or Intermediary service, which is subject to CGST and SGST as POS shall be your place.

[Sudhir Shah]

Thank you very much for the reply.

Regards,

Sudhir Shah

[YAGAY andSUN]

In addition to above reply we understand that his advance ruling would be help to you:

2018 (4) TMI 808 - AUTHORITY FOR ADVANCE RULING, WEST BENGAL

AI Summary

Intermediary services performed in India attract CGST and SGST where place of supply is in India, not export treatment. Services consisting of promoting a foreign principal, generating inquiries, managing and motivating agents in India and providing support-while the principal supplies goods and receives payment-are characterised as intermediary or commission-agent services; such services have their place of supply in India and are taxable as domestic supplies subject to CGST and SGST, rather than being treated as exports under LUT.