IT-BPM industry welcomes GST clarification on intermediaries

This is a long-standing issue between the IT-BPM industry and the government

The industry on Tuesday welcomed the Goods and Services Tax (GST) Council’s circular, clarifying the role of intermediaries in the tax regime. This will provide a breather to business process management (BPM) and information technology (IT) services companies. However, some categories of intermediaries would still not be exempt.

Therefore, experts say the government needs to re-look the definition for people engaged in, for example, marketing and promotion services for foreign companies.

“Nasscom welcomes the clarifications issued by the GST Council on the scope of intermediary services and exports of services. We expect these clarifications to lay to rest long-pending disputes