The concept of Intermediary services was embodied in Goods and
Services Tax Act from the Service Tax regime.
"Intermediary" has been defined under section 2(13) of
Integrated Goods and Services Tax Act, 2017 (hereinafter referred
as the Act) as under-
"Intermediary means a broker, an agent or any other
person, by whatever name called, who arranges or facilitates the
supply of goods or services or both, or securities, between two or
more persons, but does not include a person who supplies such goods
or services or both or securities on his own
account."
The words "arranges or facilitates' the supply of goods
or services or both, between two or more persons, is the crux of
the definition of intermediary. The Central Board of Indirect Taxes
and Customs has clarified on scope of intermediary services via its
circular no. 159/2021 published on 20.09.2021. The circular has
provided for some pre requisites for scope of intermediary
services,
