GST on intermediary service

[Kavali Ramanjeneyulu]

One Indian Company is a subsidiary company of a Singapore company . Singapore company manufactures Pharmaceutical packaging products and sells in India. Indian company provides marketing services like obtaining purchase orders / sales requirements from the Indian customers and forwarding the same to Singapur Company, Pursuing payments from the Indian Customers and coordinating to settle issues between the Singapore Company and Indian Customers. For providing this activity, the Indian Company receives consideration in foreign currency on the basis of Operating cost + Mark up i.e 100+15% every month. The Indian Company has provided the above service under LUT claiming it as export of service. In this request , I request clarification on the following query.

1. Since the Indian Company is located in India and providing marketing services to Singapore Holding company, whether it can be considered as Intermediary?

2. If the Indian Company is considered as Intermediay , whether it is liable to pay GST on the marketing services as both Location of service provider and place of supply fall in India ?

Please provide clarification along with legal provisions and any Advance Rulings/case laws .

AI Summary

Intermediary service treatment may render marketing support by domestic subsidiary taxable with place of supply in India.
An Indian subsidiary that procures orders from domestic customers and forwards them to its foreign parent, pursues payments and coordinates issues prima facie qualifies as an intermediary under the IGST definition; where the intermediary's activities occur in India the place of supply is India and the receipts are subject to GST, though alternate jurisprudence argues that if the foreign parent is the contractual recipient and payer the service may be exportable.