Import of Service

[Kaustubh Karandikar]

The services provided by XYZ(India) to PQR, Switzerland (Parent Company), are in connection with ‘Information Technology assistance services relating to system and knowledge engineering and also services in connection with providing infrastructure support for global delivery centre. XYZ is not only providing services to PQR but also to other group companies of XYZ outside India but payment in all the cases received from PQR. In turn PQR recovers amount from group companies for services provided to them by XYZ. Will this be treated as intermediary service which will fall under Section 13(8) and therefore XYZ will be liable to pay GST?

[Shilpi Jain]

It would be relevant to see the agreements in this regard to come to any conclusion.

[Shilpi Jain]

Also if PQR is an intermediary the place of supply will be outside India and there would be no liability on XYZ.

AI Summary

Intermediary status under GST may shift place of supply abroad, removing Indian GST liability for those services. Whether services by an Indian supplier to its foreign parent amount to intermediary status depends on the contracts and factual allocation of roles; if the parent is acting as an intermediary procuring services for others, the place of supply is outside India and no Indian GST liability arises, so review of underlying agreements is necessary.