{"id":1000496,"date":"2026-04-01T09:34:41","date_gmt":"2026-04-01T04:04:41","guid":{"rendered":"https:\/\/telecomlive.in\/web\/?p=1000496"},"modified":"2026-04-01T11:22:30","modified_gmt":"2026-04-01T05:52:30","slug":"removal-of-intermediary-clause-brings-gst-relief-for-it-companies","status":"publish","type":"post","link":"https:\/\/telecomlive.in\/web\/2026\/04\/01\/removal-of-intermediary-clause-brings-gst-relief-for-it-companies\/","title":{"rendered":"Removal of intermediary clause brings GST relief for IT companies"},"content":{"rendered":"<p>In a major relief for India\u2019s IT services exporters, the government has scrapped the contentious \u201cintermediary\u201d clause under the Integrated Goods and Services Tax (IGST) Act through the Finance Act, 2026 \u2014 a move expected to ease long-standing tax disputes and unlock refunds. <\/p>\n<p>The amendment addresses a key pain point for IT\/ITES firms, global capability centres (GCCs), and other cross-border service providers catering to overseas clients. Until now, services classified as intermediary were taxed based on the supplier\u2019s location in India, even if the end client was abroad. As a result, such services failed to qualify as exports, leading to denial of zero-rating benefits and blocking of GST refunds.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a major relief for India\u2019s IT services exporters, the government has scrapped the contentious \u201cintermediary\u201d clause under the Integrated Goods and Services Tax (IGST) Act through the Finance Act, 2026 \u2014 a move expected to ease long-standing tax disputes and unlock refunds. The amendment addresses a key pain point for IT\/ITES firms, global capability centres (GCCs), and other cross-border service providers catering to overseas clients. Until now, services classified as intermediary were taxed based on the supplier\u2019s location in India, even if the end client was abroad. As a result, such services failed to qualify as exports, leading to [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[75,4,17],"tags":[],"class_list":["post-1000496","post","type-post","status-publish","format-standard","hentry","category-it-2-the-new-indian-express","category-newspapers","category-the-new-indian-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/1000496","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=1000496"}],"version-history":[{"count":0,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/1000496\/revisions"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=1000496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=1000496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=1000496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}