Type of GST payable

[Kaustubh Karandikar]

As per the decision of the Mumbai High Court which states in its order on Page 113:-

“The provisions of Section 13(8)(b) and Section 8(2) of the IGST Act are legal, valid and constitutional, provided that the provisions of Section 13(8)(b) and Section 8(2) are confined in their operation to the provisions of IGST Act only and the same cannot be made applicable for levy of tax on services under the CGST and MGST Acts”. As per the provision of IGST Act, the GST payable is to be paid under IGST as per my understanding. Does the order confirm that the GST payable by the intermediary located in India for supplies made to its customer outside India is to be paid under ‘IGST’ or does it confirm that the GST payable is under ‘CGST+SGST’? Need valuable guidance in the matter

AI Summary

GST Applicability for Intermediaries: Mumbai HC Upholds Sections 13(8)(b) and 8(2) of IGST Act, Dispute Continues A discussion forum addresses the applicability of GST for services provided by intermediaries in India to customers abroad. The Mumbai High Court ruled that Sections 13(8)(b) and 8(2) of the IGST Act are constitutional but only applicable to the IGST Act, not CGST or SGST. Opinions vary, with some participants asserting no GST is due, while others suggest potential CGST and SGST demands. The consensus is that the matter may ultimately be resolved by the Supreme Court. Participants advise caution and suggest contesting any demands based on the High Court's ruling.