ITeS players told to pay GST on services given to parent, group entities

Mumbai: The Indian arms of IT-enabled services (ITeS) companies have been asked to pay GST on the services they provide to their parent or other group entities as part of the tax department’s drive to shore up tax receipts, people in the know said.

As per rules, exports don’t attract GST (goods and services tax) and companies can claim refunds from the revenue department.

The idea is that goods and services exported from India should be as cost efficient as possible to remain competitive against those from other countries.