Commission received from foreign buyers for services and procurement of goods do not fall under the definition of intermediary services

Last updated: 27 March 2024

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Quick Summary

The Supreme Court has dismissed an appeal by the Commissioner of Goods and Services Tax and Central Excise, upholding a previous ruling. The case concerned whether commissions received by SNQS International Socks Private Limited from foreign buyers for procuring export orders constituted 'intermediary services'. The court affirmed that the extensive services provided, including vendor selection, quality control, and sample design, went beyond mere procurement and were rendered on a principal-to-principal basis, thus not falling under the definition of intermediary services.

Court :
Supreme Court of India

Brief :
The Hon'ble Supreme Court in the case of Commissioner of Goods and Services Tax and Central Excise v. SNQS International Socks Private Limited [Civil Appeal Diary No(s). 8343/2024 dated March 19, 2024] dismissed the Commissioner of Goods and Services Tax and Central Excise ("the Appellant") appeal.

Citation :
Civil Appeal Diary No(s). 8343/2024 dated March 19, 2024

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