GST DAILY – 86 HC directed Dept. to allow refund to Assessee’s for providing book keeping & accounting services to foreign entity

GST DAILY – 86

Issues : Where Assessee’s was engaged in business of providing book keeping, payroll, and accounting services through use of cloud technology to its affiliated entity incorporated in United Kingdom, can they claim for refund of unutilized input tax credit in respect of zero rated supplies ?

Hon’ble HC Judgement:

THE Hon’ble DELHI HIGH COURT in BOKS BUSINESS SERVICES PVT. LTD. V/s COMMISSIONER OF CGST decided on 22-8-2023

Assessee can claim refund of unutilized ITC in respect of export of services (zero rated supplies) on ground that Assessee was an intermediary under section 2(13) of IGST Act, 2017.

HELD : Assessee acted as principal service provider as per agreement between parties and not as agent or intermediary – Hence, revenue was directed to process Assessee’s refund – Within period of four weeks from date of current order

Refer. Section 16 read with section 2(13)of IGST Act, 2017