Taxes are not exported; GST on intermediaries’ foreign earnings should go

The bedrock of a robust GST regime is that taxes are not exported with goods or services. In the Indian GST context, some outliers exist. One such outlier is the “intermediary.” Intermediaries are typically agents or brokers who help identify customers or sources of supply for their principal. India-based intermediaries bear the brunt of a GST levy on commissions earned from overseas. For example,…