Business News Live: Automated ITC refunds, GCC relief among key issues at GST council meet today
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The GST Council may amend the IGST Act today to treat services provided by GCCs to overseas entities as exports.
- ✓This change would remove the 18 percent GST currently levied on them.
- ✓Officials said the ITC used for these services would be eligible for refund, helping engineering and semiconductor design firms.
Story at a Glance
- Category
- BUSINESS
- Reported By
- MoneyControl
- Reading Speed
- 1 Minute(s)
- Market Focus
- India Economy
That puts Indian exporters at a disadvantage against delivery centres elsewhere, and a change would also bring more certainty. (Read more)
The Council may amend the IGST Act so that certain services GCCs provide to overseas group entities are treated as exports, removing the 18 percent GST now levied on them.
Section 13(3)(a) currently makes the place of supply India for services on goods located here, even when payment comes in foreign exchange. Officials said the ITC used in providing these services would be eligible for refund.
The change would matter for engineering, R&D, testing and semiconductor design work.
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