Sources said that the finance ministry officials have assured the indenting agents — agents of foreign companies, who sell their products in India and overseas by charging a commission — that it will consider their demand for exempting them from IGST but only partly. IGST may not be levied on transactions, which are sold overseas.
Now, those in textiles, handicrafts and home furnishing industry are planning to approach Chandigarh and Delhi high courts. IGST is levied on these agents under Section 13(8)(b) of the IGST Act, which deems the place of supply for intermediary services in India.
Abhishek Rastogi, counsel of petitioners in the Gujarat high court and partner at Khaitan & Co.Ltd, said it is hoped that the benefit comes immediately at least with respect to service when the imported goods are going from outside of India to another overseas destination.