GST: Submission requesting for inclusion of IT/ ITeS and OIDAR under list of notified goods and services under S.16(4) of IGST Act

Terms of use

Terms of Use

The use of this site and the content contained therein is governed by the Terms of Use. When you use this site you acknowledge that you have read the Terms of Use and that you accept and will be bound by the terms hereof and such terms as may be modified from time to time.

All text, graphics, audio, design and other works on the site are the copyrighted works of nasscom unless otherwise indicated. All rights reserved.
Content on the site is for personal use only and may be downloaded provided the material is kept intact and there is no violation of the copyrights, trademarks, and other proprietary rights. Any alteration of the material or use of the material contained in the site for any other purpose is a violation of the copyright of nasscom and / or its affiliates or associates or of its third-party information providers. This material cannot be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for non-personal use without obtaining the prior permission from nasscom.
The nasscom Members login is for the reference of only registered nasscom Member Companies.
nasscom reserves the right to modify the terms of use of any service without any liability. nasscom reserves the right to take all measures necessary to prevent access to any service or termination of service if the terms of use are not complied with or are contravened or there is any violation of copyright, trademark or other proprietary right.
From time to time nasscom may supplement these terms of use with additional terms pertaining to specific content (additional terms). Such additional terms are hereby incorporated by reference into these Terms of Use.

Disclaimer

The Company information provided on the nasscom web site is as per data collected by companies. nasscom is not liable on the authenticity of such data.
nasscom has exercised due diligence in checking the correctness and authenticity of the information contained in the site, but nasscom or any of its affiliates or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this site. The information from or through this site is provided "as is" and all warranties express or implied of any kind, regarding any matter pertaining to any service or channel, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement are disclaimed. nasscom and its affiliates and associates shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorised access to, alteration of, or use of information contained on the site. No representations, warranties or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability or applicability of the information to a particular situation.
nasscom or its affiliates or associates or its employees do not provide any judgments or warranty in respect of the authenticity or correctness of the content of other services or sites to which links are provided. A link to another service or site is not an endorsement of any products or services on such site or the site.
The content provided is for information purposes alone and does not substitute for specific advice whether investment, legal, taxation or otherwise. nasscom disclaims all liability for damages caused by use of content on the site.
All responsibility and liability for any damages caused by downloading of any data is disclaimed.
nasscom reserves the right to modify, suspend / cancel, or discontinue any or all sections, or service at any time without notice.

For any grievances under the Information Technology Act 2000, please get in touch with Grievance Officer, Mr. Anirban Mandal at data-query@nasscom.in.

New

See all

No notification found.

GST: Submission requesting for inclusion of IT/ ITeS and OIDAR under list of notified goods and services under S.16(4) of IGST Act

Tejasvi

@tejasvi

April 13, 2021

Public Policy

105

As you may be aware, S.16(3) of Integrated Goods and Services Tax Act, 2017 (IGST Act) allows a registered person making zero-rated supplies to claim refund as per provisions of S. 54 of Central Goods and Services Tax Act, 2017 (CGST Act) under either of the following two options:

Option 1 - Refund of unutilised Input Tax Credit (ITC) under bond/Letter of Undertaking (LUT), without payment of IGST
Option 2 - Refund of IGST paid on exports (i.e., rebate option) – Supplies are made on payment of IGST against which refund of tax paid on such outward supplies is claimed.

However, due to an amendment introduced in Union Budget 2021-22, the option for claiming refund of tax paid on supplies with payment of IGST, originally covered under S.16(3)(b), is now being dealt with under the newly inserted S.16(4).

The new sub-section restricts availability of rebate option to a class of persons engaged in export of a class of goods or services. However, till date, the class of persons eligible for rebate option has not been notified by the government. This could result in difficulties for exporters as refund claims filed in respect of unutilized ITC under LUT is often marred by prolonged adjudication, resulting in unnecessary hardships and causing an adverse impact on working capital.

In this regard, we have made a submission to GST Policy Wing requesting them to include Information Technology (IT)/ IT enabled Services (ITeS) sector in the notified class of taxpayers and also include goods/services provided by IT/ITeS companies in the list of notified goods and services under S. 16(4) of IGST Act. Further, since majority of IT/ ITeS provided through electronic network fall within the ambit of "online information and database access or retrieval" (OIDAR) services as defined under S.2(16) of IGST Act, we have also requested for inclusion of OIDAR services in the list of notified goods and services.

We will keep you posted on further developments in this regard.

Disclaimer

That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.

Tejasvi