Nasscom raises GST clarity issues ahead of Council meeting

The National Association of Software and Services Companies (Nasscom) has identified two outstanding issues requiring clarity under the GST framework for services exporters ahead of the upcoming Council meeting.

The first concerns the treatment of services supplied through overseas branches. Indian service exporters frequently operate through branch offices abroad to serve international clients, yet current GST provisions create ambiguity about whether such arrangements should affect the classification of services sourced from India as exports. Nasscom Vice President and Head of Public Policy Ashish Aggarwal stated that the manner in which companies structure their overseas presence should not independently determine export status. "Clarity on this would support competitiveness, release working capital and reduce the litigation the industry has faced over the years," Aggarwal said.

The second issue involves research and development activities conducted in India on prototypes or samples provided by overseas customers. When Indian teams perform engineering, testing, or R&D work on foreign-supplied materials within Indian territory, GST treatment remains unclear, creating potential compliance complications for exporters.

These matters assume added significance as Indian service exports face increasing competitive pressures globally. Industry representatives argue that resolving these ambiguities would streamline operations and reduce administrative burden on companies engaged in cross-border service delivery.