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IGST on intermediaries: Gujarat High Court admits a petition to review

IGST on intermediaries: Gujarat High Court admits a petition to review

The High Court (HC) of Gujarat has admitted a petition to review its judgment upholding the constitutional validity of the imposition of integrated goods and services tax (IGST) on firms that engage in marketing and promotion services for foreign companies.

The matter pertains to the place of supply rules under the GST regime. For such firms, or indenting agents in technical terms, the place of supply is deemed to be within India. These intermediaries are the agents of foreign companies, and sell their products in India and abroad by charging a commission. They are found mainly in the IT hardware and software, metal, textile and home furnishing industries.


When IGST is levied on inter-state transfers within India, it is imposed on service providers. In the case of indenting agents, however, it is levied on service receivers or companies outside India

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