The IT-ITeS industry has been grappling with challenges on the concept of ‘intermediary services’ and being exposed to demand of GST at 18% on exports, even though the billing for its activities are made to overseas customers for which foreign exchange is received as well. Forum has been diligently pursuing this matter with the Ministry of Finance, the GST Law Committee, the GST Council Secretariat and the Board (CBIC) and have made multiple requests earlier. However, the industry is still awaiting a concrete resolution on this issue around “intermediary”. We have now submitted a request for issuance of revised Circular on the classification of Information Technology enabled Services as ‘intermediary services’ as recommended by the GST council in 37th meeting.
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