Ahead of the GST Council meeting, IT-ITES industry body Nasscom has flagged two outstanding issues on services exports — the treatment of services supplied through branches abroad, and R&D done in India on prototypes provided by overseas customers.
Nasscom Vice President and Head of Public Policy Ashish Aggarwal, in a statement, said that Indian service exporters often serve overseas customers through branches abroad, and added that the way a company organises its overseas presence should not, by itself, decide whether a service supplied from India is treated as an export.
“Clarity on this would support competitiveness, release working capital and reduce the litigation the industry has faced over the years,” Aggarwal said.
The Goods and Services Tax (GST) Council is scheduled to meet on October 8.
According to Nasscom, another issue arises when an Indian team carries out R&D, engineering or testing on a prototype or sample that an overseas customer provides in India.
“The …
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