Intermediary classification under GST determines whether ITeS providers qualify as exports and may claim export benefits. The circular clarifies that suppliers of ITeS who supply services on their own account (e.g., back-office operations, call centres, data processing) are not intermediaries, even when serving clients' customers; providers whose role is limited to arranging or facilitating supply (e.g., logistics, order placement, clearances, transportation, post-sales support) are intermediaries. When both types of services coexist, classification depends on facts and which service is the principal supply. Non-intermediary suppliers may claim export of services benefits only if they satisfy the statutory criteria including recipient location, place of supply, and receipt of payment in convertible foreign exchange.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Intermediary classification under GST determines whether ITeS providers qualify as exports and may claim export benefits.
The circular clarifies that suppliers of ITeS who supply services on their own account (e.g., back-office operations, call centres, data processing) are not intermediaries, even when serving clients' customers; providers whose role is limited to arranging or facilitating supply (e.g., logistics, order placement, clearances, transportation, post-sales support) are intermediaries. When both types of services coexist, classification depends on facts and which service is the principal supply. Non-intermediary suppliers may claim export of services benefits only if they satisfy the statutory criteria including recipient location, place of supply, and receipt of payment in convertible foreign exchange.
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