Inter Vs. Intra

[ShaikhAbdulSamad Ahmad]

Mr. India provides intermediary service to non resident company. As per section 13 of the IGST Act, 2017 states that PoS is place of provider of service, which destine it as Intra state. However, section 7(5)(c) of the IGST Act, 2017 colour the transaction as Inter state. Kindly clarify, whether it is Intra or inter.

AI Summary

Debate on GST: Are intermediary services to non-resident firms intra-state or inter-state under IGST Act, sections 7, 8, 13? A discussion on the classification of a service under the Goods and Services Tax (GST) framework in India revolves around whether intermediary services provided by an Indian company to a non-resident company should be considered intra-state or inter-state. The primary issue is the interpretation of the Integrated Goods and Services Tax (IGST) Act, 2017, particularly sections 7, 8, and 13. The consensus suggests that if the non-resident company lacks a permanent establishment in India, the service is considered an export, thus liable for IGST. However, if services are performed in India, they may be subject to CGST and SGST as intra-state supply.