NASSCOM urges GST clarity for tech exports and India R&D
NASSCOM is urging the government to clear up how GST applies to tech services sent overseas through foreign branches and R&D services done in India on prototypes or samples provided by overseas customers.
Right now, confusing rules are making it tough for Indian companies to compete globally and causing unnecessary legal headaches.
NASSCOM says exporters face credit reversals
The current GST framework creates a disparity between services exported through overseas branches and those routed through separately incorporated subsidiaries, which means input tax credit reversals and additional compliance requirements for exporters.
NASSCOM says this isn't fair, especially since India has huge potential in global tech.
As Nasscom's vice president and head of public policy, Ashish Aggarwal puts it, updating these rules would help Indian companies innovate without getting bogged down by tax confusion.