Services Provided by an Indian Firm to Foreign Firm as an Intermediary will be Liable to CGST+SGST Instead of IGST: Gujarat AAR

Case: M/s Sagar Powertex Private Limited

Clause(s) of Section 97(2) of CGST/GGST Act, 2017, under which the question(s) raised: (e) determination of the liability to pay tax on any goods or services or both.

Ruling Sought for: M/s. Sagar Powertex Pvt. Ltd., Sagar House, Indian Red Cross Society, Nr. Old Vadaj Circle, Ashram Road, Ahmedabad -380013 having a GSTIN: 24AADCS0473P1Z3, is a company filed an application for Advance Ruling under Section 97 of CGST Act, 2017 and Section 97 of the GGST Act, 2017 in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the GGST Act.

Question: In the said transaction, whether IGST is applicable or CGST+ SGST is applicable?

Ruling by AAR: In view of the above discussion applicant is liable to payment of CGST and SGST for the services provided as an “intermediary”.

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