Question15:
Service provider in Delhi gives commission service (intermediary services) to
London. In this case as per Sec 13(8) place of supply is in Delhi. Logically it
should be payment of CGST & SGST since service provider and place of supply both
are in Delhi. But GST twitter handle says IGST. Please clarify
Answer:
The supply Will attract type of GST on the basis of classification of supply
whether inter state or intra state The same is to be decided on the basis of
section 7 and section 8 of IGST ACT
Section 8 relevant portion is as follow
Section 8: Intra-State supply.
(1) supply of goods
(2) Subject to the provisions of section 12, supply of services where the
location of the supplier and the place of supply of services are in the same
State or same Union territory shall be treated as intra-State supply:
Provided that the intra-State supply of services shall not include supply of
services to or by a Special Economic Zone developer or a Special Economic Zone
unit.
This section is subject to provision given in section 12 but your case is
covered under section 13 So this section should not apply now we have to check
section 7 relevant portion is as follow
Section 7: Inter-State supply
(1) supply of goods,
(2)goods imported
(3)Subject to the provisions of section 12,
(4) services imported
(5) Supply of goods or services or both,''
(a) when the
supplier is located in India and the place of supply is outside India;
(b) to or by
a Special Economic Zone developer or a Special Economic Zone unit; or
(c) in the taxable territory, not being an intra-State supply and
not covered elsewhere in this section,
shall be treated to be a supply of goods or services or both in the course of
inter-State trade or commerce.
Because of the residuary clause highlighted above it will be covered under Inter
sate supply
Please note as per above interpretation Services covered under section 13 will
always come under inter state supply. (Reply Dt. 28/12/2017)