Nasscom Welcomes GST Council Clarification on Scope of “Intermediary Services”


Nasscom said on Saturday that the GST Council’s clarification on the scope of intermediary services will ensure that BPM exports / R&D exports and IT services-related exports are no longer denied export status by the authorities responsible for the application.

On Friday, the GST Council’s recommendations included issuing certain circulars to remove ambiguity and legal disputes on various issues. This included clarification of the scope of “intermediary services” and clarification regarding the interpretation of the term “merely establishment of a separate person” in reference to a section of the IGST Act of 2017 for the export of services.

“Nasscom welcomes the decision of the GST Board to issue a circular to clarify the scope of intermediary services. no longer be denied export status by law enforcement authorities, ”Nasscom said in a statement.

Nasscom also welcomed the Board’s decision to clarify that subsidiaries or group companies (companies incorporated in India) will be treated as separate entities and eligible for export status for exports to their foreign parent companies / group companies.

“This will resolve the cloud of uncertainty for the GCC centers in India,” he noted.

Nasscom said he has been championing this issue for 2-3 years.

“The Council’s decision will give the industry a big boost, and we will look at the finer details of the circular and hope there will be no ambiguity,” he added.

Read also: IGST on the import of airplanes, other rental goods exempt from double taxation

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