KMP Pvt. Ltd., New Delhi, provides support services to foreign customers in relation to procuring goods from India. The company identifies the…

(a) Section 2 (13) of the IGST Act, 2017 defines “intermediary” to mean 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 this case, since KMP Pvt. Ltd. is arranging or facilitating supply of goods between the foreign customer and the Indian vendor, the said services can be classified as intermediary services. If the location of the supplier of services or the location of the recipient of service is outside India, the place of supply is determined in terms of section 13 of the IGST Act, 2017. Since, in the given case, the recipient of supply is located outside India, the provisions of supply of intermediary services will be determined in terms of section 13. As per section 13 (8) (b) of the IGST Act, 2017, the place of supply in case of intermediary services is the location of the supplier, i.e. the location of KMP Pvt. Ltd. which is New Delhi. As per section 2 (6) of the IGST Act, 2017, export of services means the supply of any service when,- (a) the supplier of service is located in India; (b) the recipient of service is located outside India; (c) the place of supply of service is outside India; (d) the payment for such service has been received by the supplier of service in convertible foreign exchange or in Indian rupees wherever permitted by the Reserve Bank of India; and (e) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8. Since, in the given case, place of supply is in India, this transaction does not tantamount to export of service.