‘Intermediary’ clause removal unlocks export benefits for IT services, GCCs

India’s outsourcing and technology support service exports, including by the booming global capability centre (GCC) ecosystem, got a major relief from the Goods and Services Tax Council’s decision to remove the location provision of “intermediary services”, fixing a decade-old dispute over what would qualify as exports.

The omission will help IT- and IT-enabled services, GCCs and ecommerce companies by easing compliance requirements, unlocking working capital and reducing litigations.