Classification of service— In the instant case, the applicant submitted that they are a manufacturer and carries on the business of supply of inter-alia seasonings, spices, premixes and similar food products to its customers located within and outside India.

And in order to supply (export) its goods to customers located outside India, they approach foreign customers both on its own and through third party intermediaries or business facilitators whose job is to search and find customers located outside India and thereafter, the intermediaries connect them with the applicant. After finalizing the terms and condition related to export of goods, payments etc. with the customers located outside India the Third party intermediaries assist the applicant to export the goods manufactured by them to the prospective buyers who are located outside India.

‘The applicant’ is seeking an advance ruling on following issues:

(a) Whether Overseas Commission Agent is covered within the definition of the term ‘intermediary’ as provided under section 2(13) of the IGST Act, 2017;

(b) Whether services received by applicant from the Overseas Commission Agent falls within the meaning of the term ‘import of services’ as provided under section 2(11) of the IGST Act, 2017;

(c) Whether the applicant is required to pay GST on RCM basis under section 5(3) of the IGST Act, 2017 on commission paid to the Overseas Commission Agent.

Held that—

(i) Overseas Commission Agent is covered within the definition of the term ‘intermediary’ as provided under section 2(13) of the IGST Act 2017;

(ii) Services received by applicant from the Overseas Commission Agent do not fall within the meaning of the term ‘import of services’ as provided under section 2(11) of the IGST Act, 2017;

(iii) The applicant is not required to pay GST on RCM basis under section 5(3) of the IGST Act, 2017 on commission paid to the Overseas Commission Agent.