Breaking: GST Council Scraps Intermediary Rules, Litigation Nightmare Ends

The GST Council’s 56th Meeting was held on September 3, 2025, to discuss some major changes in the GST System. The Council has given recommendations for several changes. One of the recommendations given by the council is to remove clause (b) of Section 13(8) of the IGST Act, 2017. This section outlines the provisions to determine the place of service where the supplier’s location of services or the recipient’s location of service is outside India. As per clause (b) of Section 13(8) of the IGST Act, 2017, the place of supply in case of intermediary services is considered as the location of the supplier.

With this recommended change, the place of supply for the “intermediary services” will be determined as per the default provision under Section 13(2) of the Act. This means that if the service recipient is outside India, the Indian exporters can claim GST exemption and export benefits. This new change will be beneficial for the Indian Companies that export to their clients in foreign countries.