The above provisions are valid in so far as the provisions of the IGST Act are concerned. The same cannot be borrowed and/or extended to the provisions of CGST & SGST Act. The state legislature does not have legislative competence to levy tax on exports.
UBR Comments: Whether or not a supplier is an intermediary or not is question of fact and would depend on facts of each case. There is no CGST & SGST, as it is not an intra-state supply in terms of section 8. It is not an inter-supply as well. Section 7(5) (c) would be applicable to supply of services in the taxable territory. Supply of intermediary services is not a supply in the taxable territory. Consequently, no IGST is also payable on such a transaction. Accordingly, intermediaries should not pay GST (CGST/SGST or IGST) on supply of intermediaries services to recipient located outside India. For the past, refund claims should be filed, subject to the provisions of section 54 of the Act.
Dharmendra Jani & Ors. vs. Union of India & Ors. – WP No. 2031 of 2018 (Bom. HC)
