There are more than 200 companies involved in disputes over the definition of ‘intermediary’ services. The circular provides five prerequisites to define what service will qualify as an intermediary service.The government has clarified that services outsourced to India or carried out in the country for foreign entities will not be treated as intermediary services, and hence not face 18% goods and services tax (GST), a relief for the country’s $180 billion back-office sector.
Approved by the GST Council on Friday, the clarification will free up hundreds of crores in tax refunds to entities in the information technology (IT), IT-enabled services (ITeS), financial service
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https://economictimes.indiatimes.com/news/company/corporate-trends/no-gst-on-countrys-180-billion-back-office-sector/articleshow/86376658.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst