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Survey: Request for details of cases interpreted as Intermediary under GST
Survey: Request for details of cases interpreted as Intermediary under GST

April 9, 2021

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As you are aware, our industry has been facing a vexing issue wherein back office support services provided by ITeS is being incorrectly qualified as ‘intermediary services’, resulting in levy of 18% GST.

NASSCOM has been diligently pursuing this matter with Ministry of Finance, the Law Committee, the GST Secretariat, Central Board of Indirect Taxes and Customs (CBIC) and the Chief Economic Advisor and have made several submissions earlier.

Last month, we met Chief Economic Advisor Dr. Krishnamurthy Venkata Subramanian to discuss the issue in detail. The government officials are cognizant of the fact that misinterpretation of ITeS as intermediary is an issue and needs to be resolved.  We have now written to Shri Tarun Bajaj, who recently took over as Secretary – Department of Revenue, to seek a meeting to discuss the issue.

We understand that cases interpreting ITeS as Intermediary have increased in the recent times and hence, we would request you fill a survey providing details of such cases to highlight the magnitude of this issue and its adverse impact on the IT-BPM industry. The survey can be accessed from the link provided below:

https://www.surveyhero.com/s/Intermediary

We request you to share details of cases that have culminated in a Show Cause Notice /order as well as instances of ongoing enquiries, delayed refunds (which may have been subsequently sanctioned) as a result of interpretations on the intermediary issue along with key allegations made by authorities. For those who have already provided inputs earlier, request you to again participate in this exercise with the latest status of the facts.

You are requested to send your response before April 20, 2021.


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