GST on intermediary service

[Kavali Ramanjeneyulu]

Sir,

One taxpayer located in Hyderabad is providing marketing services as an Intermediary to a Company located in Singapore. As per the Section 13(8) of the IGST act , the place of supply of Intermediary is the location of the Supplier. So, in this case, the place of supply is Hyderabad which is the location of the supplier. In this regard, clarification may please be given as to whether IGST or CGST +SGST is payable on the said intermediary services.

AI Summary

GST Dilemma: Marketing Services as Intermediary Raises IGST vs. CGST/SGST Debate Under Sections 13(8) and 7(5) IGST Act. A taxpayer in Hyderabad provides marketing services as an intermediary to a Singaporean company, raising questions about whether IGST or CGST/SGST applies. Section 13(8) of the IGST Act states the place of supply is the supplier's location, suggesting CGST/SGST is applicable since both supplier and supply location are in the same state. However, differing views suggest IGST may apply, citing Section 7(5) of the IGST Act. The discussion highlights the complexity and lack of consensus on whether the transaction is intra-state or inter-state, with some arguing it might not be taxable under current GST laws.