Fearing 18% GST, back office firms challenge intermediary tag in Gujarat HC

In November, it was ruled that back office support services qualify as intermediary services and not as exports

Some back office service providers have have moved the Gujarat High Court challenging a recent tax department ruling that had classified them as intermediaries, thus making them liable to imposition of 18 per cent goods and services tax (GST) on their services. 

In their appeal, these companies have pleaded that the definition of ‘intermediary’ is already established under the previous service tax regime and any alteration in this regard will not only increase the tax burden of the outsourcing industry but will also open the Pandora’s box in terms of retrospective taxation.

"We have filed a writ petition in the Gujarat High