The Bombay High Court’s third judge ruled that the State cannot impose state GST on services provided by Indian intermediaries to recipients located outside India, citing constitutional and statutory provisions.
This means that state GST cannot be levied on these transactions, and technically IGST cannot be imposed either. The fine print of the judgment of the third bench member is awaited.
P.S: Earlier, the Hon’ble Gujarat High Court[1] upheld the validity of the intermediary provision. The Division Bench of Hon’ble Bombay High Court[2] had given divergent views. The matter was referred to a third member.