The Central Board of Indirect Taxes and Customs ( CBIC ) has withdrawn Circular No. 107/26/2019-GST dated 18.07.2019 with regarding supply of Information Technology enabled services.
In a Circular issued by CBIC said that, due to numerous representations were received expressing apprehensions on the implications of the said Circular. In view of these apprehensions and to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in the exercise of its powers conferred by section 168(1) of the Central Goods and Services Tax Act, 2017, hereby withdraws, ab-initio, Circular No. 107/26/2019-GST dated 18.07.2019.
In the Circular, the CBIC had stated that, The definition of intermediary inter alia provides specific exclusion of a person i.e. that of a person who supplies such goods or services or both or securities on his own account. Therefore, the supplier of services would not be treated as „intermediary‟ even where the supplier of services qualifies to be „an agent/ broker or any other person‟ if he is involved in the supply of services on his own account.