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Intermediary services under GST - SGST CGST IGST

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CA. Bhavik P. Chudasama

Practice

5819 Points Joined April 2012

In case of Intermediary Services

What should be charged

CGST/SGST or IGST

Place of Supply will be Maharashtra

Location of Recipient : Outside India

Location of Serivce Provider : Maharashtra

Replies (1)

Rama chary Rachakonda

Master in Accounts & high court Advocate

8996 Points Joined December 2011

For intermediary services, the place of supply (POS) determines whether CGST/SGST or IGST should be charged.

Place of Supply (POS) As per Section 13(8) of the IGST Act, 2017, the POS for intermediary services is the location of the supplier of the underlying service.

Location of Supplier and Recipient Given that: - Location of Service Provider (intermediary): Maharashtra -

Location of Recipient: Outside India Applicable Tax Since the recipient is located outside India, the supply of intermediary services is considered an export of service.

As per Section 2(6) of the IGST Act, 2017, exports are zero-rated supplies.

Therefore: - No CGST/SGST or IGST is chargeable on the supply of intermediary services. - The supplier can claim a refund of unutilized input tax credit.

Please note that it's essential to maintain proper documentation, including the recipient's address and other relevant details, to support the zero-rating of the supply.

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