More agents of foreign companies to approach courts against 18% IGST

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Indenting agents of foreign companies in textiles, handicrafts and home furnishing industry would join their counterparts in metal industry to approach courts against 18 per cent Integrated GST (IGST) imposed on them under the place of supply rules.

Indenting agents are the agents of foreign companies, who sell their products in India and overseas by charging a commission. Indenting agents in the metal industry have already approached Gujarat high court against IGST.

Now, those in textiles, handicrafts and home furnishing industry are planning to approach Chandigarh and Delhi high courts, said Abhishek Rastogi, counsel for indenting agents in the Gujarat High Court and partner at Khaitan & Co.

He said the agents provide service to foreign players and are hence engaged in export of services, and hence IGST should not be levied on them.