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Companies may soon have to pay GST on inter-state office services like HR

Companies with multi-state offices will suffer as services provided by an office in one state to another office in any other state will face goods and services tax

GST, goods and services tax, GST collection
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A circular endorsed by the GST Council, will be issued soon

BS Web Team
In-house functions of an organisation's office such as human resources, accounts and payrolls, if carried out from a centre in one state for offices in other states, will come under the GST net, Economic Times reported on Tuesday.  Invoices for the same will have to be issued. 

What this means is that companies with multi-state offices will suffer as services provided by an office in one state to another office in any other state will face goods and services tax. The move would add to their transaction costs and compliance burden. Moreover, the issue of cross charge is likely to lead