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Supplies to IT/ITeS parent firms eligible for refunds, clarifies CBIC

The move comes as a major relief to several entities that were denied refunds when they were exporting services to their parent or subsidiary companies abroad

service exports
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Experts suggest that the clarification will largely address concerns of the exporter community and help them get their refund claims cleared.

Dilasha Seth New Delhi
In what will address the concerns of services exporters, especially information technology and information technology-enabled services (IT/ITeS) entities, the Central Board of Indirect Taxes and Customs (CBIC) clarified on Monday that supplies to parent or subsidiary companies abroad would be eligible for refunds and not qualify as exports.

The move comes as a major relief to several entities that were denied refunds when they were exporting services to their parent or subsidiary companies abroad. It was based on the recommendations of the 45th Goods and Services Tax (GST) Council meet that took place in Lucknow on Friday.

The government has

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First Published: Sep 21 2021 | 8:25 PM IST

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