Easier rules to aid IT, financial service exports
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The GST Council will consider new rules for service exports at its October 7 meeting.
- ✓These changes aim to help IT and financial firms by easing tax recovery.
- ✓Officials said the proposals would shift the focus to the customer's location, helping companies that use overseas offices to serve local clients.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Financial Express
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
The Goods and Services Tax (GST) Council is likely to consider a slew of changes to the tax treatment of services exports at its October 7 meeting, aimed at aligning rules with how Indian companies actually serve overseas customers and easing the recovery of taxes embedded in export costs, sources said.
The proposals could provide relief to information technology and IT-enabled services companies, engineering and consulting firms, testing and certification agencies, research organisations and financial-service providers.
These services form a major chunk of services exports of $421.3 billion in 2025-26. Services exports as a percentage of total exports have been increasing every year. They now account for 48.8% of total exports up from 33.8% in 2024-15.
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Financial Express
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