In a circular to be able to have ways-achieving implications on the export and ITeS network, the Government has clarified that absolutely everyone engaged in the facilitation of supply of goods/offerings will now not be considered to be engaged in export and could now be taken 
into consideration as a middleman until it’s miles on his own account. This might imply carrier vendors engaged in backend offerings inclusive of placement and shipping and logistical aid, obtaining relevant Government clearances, transportation of products, put up-income help offerings and others will now come below the ambit of GST and may be taxed at 18%.
With this round, most BPO-KPO offerings can now be treated as intermediaries under GST regulations and be taxed below GST. Through the Circular, CBIC has attempted to offer clarifications on applicability of the concept of ‘middleman offerings’, and its consequent remedy under GST for Information Technology enabled Services (‘ITeS’), Back Office Support services and so on.
It has been emphasized that a provider of provider might now not be handled as an intermediary, if offerings are being supplied on his very own account, notwithstanding him qualifying as an agent/ dealer. Further, the Government has tested diverse scenarios, wherein a provider of ITeS positioned in India materials offerings for and on behalf of a client placed overseas, to clarify its treatment below GST and damaged it down into 3 situations.
Scenario 1:
Supplier of service provides ITeS (backend services as enlisted below Rule 10TA(e) of Income-tax Rules) on his very own account to his customers or customers of his client’s (on patron’s behalf).
It has been clarified that such service companies would now not qualify as an intermediary as he is presenting services on its own account.
Accordingly, the said offerings might also qualify as export of service under GST.
The said role might maintain appropriate, even though such offerings are furnished to the clients of the client’s, on the client’s behalf.
Scenario 2:
Supplier of backend offerings placed in India arranges or facilitates the supply of goods/ offerings through the customer placed overseas to the customers of the purchaser.
It has been clarified that such provider companies would qualify as middleman below GST.
This shall cover lower back-stop offerings such as support services (during pre-transport, shipping and put up-shipping of supply) inclusive of order placement and shipping and logistical help, acquiring applicable Government clearances, transportation of products, post-sales guide services.
The provision of such offerings is simply for arranging or facilitating the supply of goods or offerings between or greater people.
Accordingly, the export gain might now not be available on supply of such offerings.
Scenario 3:
Supplier of ITeS elements lower back give up offerings (as enlisted underneath Rule 10TA(e) of Income-tax Rules) on his own account along with arranging or facilitating the supply of various aid offerings all through pre-delivery, transport and put up-transport of delivering for and on behalf of the purchaser placed overseas [i.E.
Scenario 1+ Scenario 2]
It has been clarified that type of such services as middleman would depend upon the statistics and instances of each case.
It must be determined which set of the provider (i.E. Scenario 1 offerings or Scenario 2 offerings) could represent as the main or important deliver.
Accordingly, the export gain could now not be available in case the Scenario 2 offerings (i.E. Arranging or facilitating the delivery of various assist offerings during pre-delivery, shipping and submit-transport of supply for and on behalf of the consumer positioned abroad) might represent as the predominant or main deliver.
