Clarification on doubts related to scope of “Intermediary”

Intermediary services defined as facilitation between multiple parties; intermediary status depends on ancillary role and absence of principal supply.

Clarification defines intermediary as a person who arranges or facilitates a supply between other persons and does not supply the main goods, services or securities on his own account. Intermediary services require more-than-two parties, consist of two distinct supplies (main supply and ancillary facilitation), and exclude subcontractors or persons supplying the main service on a principal-to-principal basis. Place-of-supply rules for intermediary services under section 13 of the IGST Act apply only when either the supplier or recipient is located outside India.