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

Place of supply for intermediary services determines whether IGST or CGST+SGST applies, creating statutory ambiguity.
Dispute whether intermediary marketing services supplied from Hyderabad to a Singapore company attract IGST or CGST+SGST. One argument fixes place of supply at supplier location and treats the transaction as intra state, supporting CGST+SGST; an opposing argument treats such supplies as inter state under the inter jurisdictional rule, supporting IGST. The conflict between statutory provisions and non binding administrative guidance creates legal ambiguity, and participants advise seeking formal clarification.