2026-VIL-26-GSTAT-DEL
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SGST Tribunal

GST - Intermediary Services or Import of Service, Procurement Hub Services - Appellant-company entered into a procurement agreement with Foreign Company to provide comprehensive procurement services including identification, selection, and approval of suppliers, negotiation of terms, and facilitation of supply from selected suppliers - Appellant initially pays IGST under reverse charge treating it as import of services, subsequently seeks refund claiming the services constitute intermediary services with place of supply outside India - Whether services provided by a foreign entity comprising supplier identification, selection, approval, negotiation of procurement terms, and facilitation of supply between the recipient and third-party suppliers constitute intermediary services under section 2(13) of the IGST Act, 2017, or constitute import of services – HELD - The CBIC Circular 159/15/2021-GST establishes that intermediary services require four essential prerequisites: minimum of three parties in the transaction, two distinct supplies with ancillary supply being merely facilitative, the service provider maintaining character of agent or broker with only supportive role, and crucially, the service provider must not supply goods or services on principal-to-principal basis on its own account - In the present case, although three parties exist in form, the foreign entity renders comprehensive procurement services on its own account as an independent contractor functioning as centralized procurement hub for the entire multinational group, providing core services to the group rather than merely arranging or facilitating supplies between two independent principals. The relationship constitutes principal-to-principal service provision on own account rendering the definition's exclusionary clause applicable, distinguishing it from true intermediary arrangements where the facilitator merely connects unrelated parties without providing substantive services independently - The outsourcing or sub-contracting of services on principal-to-principal basis does not constitute intermediary services – The services received by the appellant are in the nature of an import of service and the place of supply shall be in India. Thus, it will not come within the purview of Section 13(8)(b) of the IGST Act, and definition provided in Section 2(13) of the Act - The orders of first appellate authority is confirmed and the appeal is dismissed
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