18% GST likely on back-end IT services as they don't qualify as export

Most facilitation services the IT and ITeS sector offers at the back end, especially with respect to business process outsourcing, may attract an 18 per cent goods and services tax (GST) because the government has said those will not qualify as export.

Clearing the confusion related to exports of IT and ITeS services, the government said the services facilitating the supply of goods or services would not qualify as export and would be recognised as intermediaries, attracting an 18 per cent GST.

The move will have consequences for service providers in back-end services and post-sales support, among others.

Acting as facilitators between overseas