This circular provides clarification on whether Information Technology enabled Services (ITeS), such as call centres and business process outsourcing services, supplied to overseas entities qualify as export of services under GST, and on the distinction between ITeS services and intermediary services.

The circular explains the definition of “intermediary” under the IGST Act and emphasizes that a supplier providing services on his own account is excluded from the scope of intermediary. ITeS services, though not defined under GST law, are explained with reference to the Income-tax Rules and include services such as back-office operations, call centres, data processing, payroll, support centres, and similar IT-based services.

It clarifies different scenarios. Where an Indian supplier provides ITeS services on its own account to a foreign client, even if services are rendered to the client’s customers, the supplier is not an intermediary. In such cases, the services may qualify as export of services if all conditions prescribed under the IGST Act are fulfilled, including receipt of payment in convertible foreign exchange and place of supply being outside India.

However, where the Indian supplier merely arranges or facilitates the supply of goods or services between the foreign client and its customers, such as order processing, logistics coordination, or post-sale facilitation, the supplier is treated as an intermediary. In mixed cases where both ITeS and facilitation services are provided, classification depends on the principal supply based on facts and circumstances.

The clarification aims to reduce disputes and ensure uniform treatment of ITeS and intermediary services under GST.