Clarification issued by GST Council on intermediary status will ease litigations: Nasscom

New Delhi: The IT-BPO industry said the clarification issued by the GST Council on the intermediary status of companies will address litigations and release significant refunds of the industry which were held up due to confusion over exports being viewed as intermediary service.

“Principles laid down will guide tax treatment across sectors”, said Nasscom. The industry has also welcomed clarification on the GST export status of subsidiary Group companies. “This will ensure that the Global Capability Centres (or captives) stop facing the risk of GST on their exports to parent or group companies across the world,” said the IT industry body on Twitter on Tuesday.