Providing of marketing services and acting as a conduit between a foreign company and customers to be termed as intermediary

Last updated: 07 June 2022
Quick Summary
The Maharashtra AAR has ruled that providing marketing services to a foreign company and acting as a conduit between that company and its Indian customers constitutes an intermediary service. Consequently, these services cannot be classified as an export under the IGST Act. The ruling clarifies that the place of supply for such intermediary services is the location of the supplier in India.

Court :
AAR, Maharashtra

Brief :
The AAR, Maharashtra in the matter of Gulf Turbo Solutions LLP [Advance Ruling No. GST- ARA- 101/2019-20/B-53 dated April 27, 2022]has held that assessee providing marketing services to a foreign company and acting as a conduit between a foreign company and its Indian customers to be considered as intermediary. Further held that, such marketing services provided cannot be classifiable as export under Section 2(6) of the Integrated Goods and Services Tax Act, 2017 ("the IGST Act").

Citation :
Advance Ruling No. GST- ARA- 101/2019-20/B-53 dated April 27, 2022

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