What is meant by Intermediary under GST?

As per section 2(13) of the IGST Act, 2017, "intermediary" means a broker, an agent or 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 persons, but does not include a person who supplies such goods or services or both or securities on his own account.

In common parlance, any person who enables the supply of goods/services between two persons is considered an intermediary.

What is the place of supply in the case of intermediary services?

In the case of intermediary services, if the location of the service provider i.e. intermediary and service recipient are in India, the default rule of place of supply will be applied. It means the place of supply will be the location of the recipient if he is registered. Otherwise, it will be the address of the recipient if available on record. If the address is not available, it will be the location of the service provider.

However, if either service provider i.e. intermediary or service recipient is located outside India, section 13(8) of the IGST Act, 2017 covers the place of supply in such cases. It says that the place of supply in case of intermediary services shall be the location of the supplier of services in such case.

Is GST applicable if the location of the supplier and recipient of goods is outside India?

GST rate on intermediary services is nil if the location of both supplier and recipient of goods is outside India. However, the following documents shall be maintained for a minimum duration of five years:
1) Copy of Bill of Lading
2) A copy of the executed contract between the Supplier/Seller and Receiver/Buyer of goods
3) A copy of the commission debit note raised by an intermediary service provider in the taxable territory from a service recipient located in a non-taxable territory
4) A copy of the certificate of origin issued by the service recipient located in a non-taxable territory
5) A declaration letter from an intermediary service provider in the taxable territory on company letterhead confirming that the commission debit note raised relates to the contract when both supplier and receiver of goods are outside the taxable territory.

What are the HSN codes and GST Rates for intermediary services?