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TMI BlogINTERMEDIARY SERVICES OR EXPORT SERVICESX X X X Extracts X X X X X X X X Extracts X X X X ..... INTERMEDIARY SERVICES OR EXPORT SERVICES X X X X Extracts X X X X X X X X Extracts X X X X ..... ance, operations, and shortlist the aircraft with all its details. He is not an agent or broker. and only two persons are involved in this transaction, the place of supply of services is outside India, Payment is in terms of foreign exchange. can it come under the purview of Intermediary or export services. any decisions regarding this Reply By KASTURI SETHI: The Reply: Pl. go through Circular N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 159/15/2021-GST, dated 20-9-2021 as amended vide Circular nos. 232/26/2024-GST and 230/26/2024-GST both dated 10.09.2024. Reply By sundar andco: The Reply: The said transaction is a pure export of service fulfilling the five conditions stipulated in Section 2(6) of IGST Act 2017 Reply By Yash Shah: The Reply: As per section 2(13) of the IGST Act," Intermediary means a broker, agent, or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities between two or more person but does not include a person who supplies such goods or services or both or securities on his own account" Also, Circular No. 159/15/2021-GST clarifies that an intermediary is someone who arranges or facilitates the supply of goods or serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices or securities between two or more persons. It is thus a natural corollary that the arrangement requires a minimum of three parties, two of them transacting in the supply of goods or services or securities (the main supply) and one arranging or facilitating (the ancillary supply) the said main supply. An activity between only two parties can, therefore, NOT be considered as an intermediary ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice. An intermediary essentially "arranges or facilitates" another supply (the "main supply") between two or more other persons and, does not himself provide the main supply. Therefore based on provision and circular provided service is not considered an intermediary service as there are only two parties involved whereas to fall under the intermediary requires at least three party As per sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 2(6) of the IGST act, "Export of supply means the supply of any service when The supplier of Service should be located in India and the place of supply of service is outside India Recipient of the service is located outside of India Payment for such service should be received in convertible foreign Exchange Supplier of Service and receiver are not merely establishments of a distinct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person"
Therefore such supply of service will be the export of service as the supplier in India and the recipient is outside India and payment is received in foreign currency. X X X X Extracts X X X X X X X X Extracts X X X X
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