Fate of India’s $180-billion BPO industry to be decided by GST Council today

The Goods and Services Tax (GST) Council is on Friday expected to decide whether to treat back-office services BPO companies provide to foreign clients as exports not liable for tax or an intermediary service charged 18% tax, officials told ET.

The decision would be crucial for the over $180-billion business process outsourcing (BPO) sector that operates on thin margins and faces competition from other low-cost jurisdictions such as the Philippines and Malaysia.