The recommendations of the GST Council include issuing certain circulars to remove ambiguity and legal disputes on various issues.
NASSCOM on Saturday said the GST Council’s clarification on the scope of intermediary services would ensure that exports related to Business Process Management (BPM) exports/R&D exports and IT services are no longer denied export status by enforcement authorities.
The recommendations of the GST Council on Friday included issuing certain circulars to remove ambiguity and legal disputes on various issues. This included clarifications on the scope of “intermediary services” with reference to a section of the IGST Act 2017 for export of services and clarifications relating to the interpretation of the term “establishment of specified person only”.
“NASSCOM welcomes the decision of the GST Council to issue a circular to clarify the scope of intermediary services. We hope that this will pacify a long pending issue for the BPM industry and ensure that exports related to BPM exports / R&D exports and IT services are no longer denied export status by enforcement authorities ,” Nasscom said in a statement.
NASSCOM also welcomed the decision of the Council to clarify that subsidiaries or group companies (companies incorporated in India) would be treated as separate entities and they would be eligible for export status for export to their foreign parent companies/group companies. would be eligible for. “This will clear the cloud of uncertainty for GCC centers in India,” it noted.
Nasscom said that it has been lobbying the issue for the last two-three years. “The decision of the council will provide a major impetus to the industry and we will look into the finer details of the circular and hope that there is no ambiguity,” it added.
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