GST Council may provide exporter status to intermediaries for tax relief
The 55th Goods and Services Tax (GST) Council meeting on Saturday may provide relief to intermediaries such as brokers, agents, and online bidding portals that offer their services to entities abroad.
This will be done by classifying them as exporters, making them zero-rated.
At present intermediary services are charged at 18 per cent under the Central GST Act. According to sources, the fitment committee of the GST Council has proposed an amendment to the Integrated GST Act by deleting Section 13(8)(b).
“This amendment would alleviate the financial burden of the 18 per cent GST currently imposed on these services, thereby creating a more level playing field for Indian intermediaries in comparison to their foreign counterparts,” a source said.
This proposal comes in the light of show-cause notices (SCNs) of Rs 3,357 crore issued to these intermediaries. This may be dropped if the amendment takes effect.
