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Shot in arm for BPOs: No GST on select services

The government said select BPO services will qualify as exports and therefore won’t be subject to GST. The AAAR in Maharashtra held that back-office support services didn’t qualify as “export of service” and were in the nature of arranging or facilitating supply of goods or services between overseas companies and customers. It said these fell in the category of intermediary services and were liable to 18% GST. The CBIC circular clarified that unless there is a clear facilitation of services, BPO services will not be considered intermediary as long as the provision of service is on its own account. 

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