This will be done by classifying them as exporters, making them zero-rated.

At present intermediary services are charged at 18 per cent under the Central GST Act. According to sources, the fitment committee of the GST Council has proposed an amendment to the Integrated GST Act by deleting Section 13(8)(b).

“This amendment would alleviate the financial burden of the 18 per cent GST currently imposed on these services, thereby creating a more level playing field for Indian intermediaries in comparison to their foreign counterparts,” a source said. 

This proposal comes in the light of show-cause notices (SCNs) of Rs 3,357 crore issued to these intermediaries. This may be dropped if the amendment takes effect.

In India, many individual and corporate brokers work as brokers or agents in the commodities market, especially related to textiles and leather goods. So providing the zero-rated benefit will give big relief to them.

Source: Business Standard