It is clarified that back-office service providers (BPO) outsourcing their services to a foreign company will not be treated as the intermediary which relaxes to them to pay GST 18% on their services as intermediaries face a GST of 18% charge.
To qualify as an intermediary, the following parameter needs to be considered:
- Minimum Three parties
- Acting as an agent, broker, or another similar person
- Engaged in Ancillary services (Facilitating main supply not supplying main services)