Background
Hon’ble Punjab and Haryana High court in the matter of M/s. Genpact India (P.) Ltd. (’Assessee’ or ‘Genpact India’) has held that BPO services (including maintaining vendor/customer master data, bookkeeping, developing, licensing, and maintaining software, technical IT support services, data analysis and supporting various business functions like sourcing and supply chain management) are not ‘intermediary service’ under GST.
Brief facts
- Genpact India is registered with Haryana GST authorities and is engaged in providing a host of services collectively referred as BPO Services to Genpact International, which inter-alia include the following:
- Maintaining vendor/customer master data, scanning and processing vendor invoices, book keeping, preparing/finalizing books of account, generating ledger reconciliations, managing customer receivables etc.
- Developing, licensing and maintaining software as per clients’ needs.
- Technical IT support i.e. trouble-shooting services.
- Data analysis and providing solutions to clients in respect of forecasting of demand for their offerings and management of inventory, supporting various business functions like sourcing and supply chain management.
- Genpact India has filed an application with Haryana GST authorities claiming refund of un-utilized input tax credit (‘ITC’) on account of zero-rated supplies of services without payment of IGST under the Letter of Undertaking.
- Deputy Commissioner sanctioned part refund and agreed with the view of services provided by Genpact India qualify as export of services. Partial refund was rejected on account of ineligible ITC.
- Thereafter, Department filed an appeal before Joint Commissioner CGST (Appeals) against the order passed by Deputy Commissioner contesting entire refund amount and that services provided by Genpact India are intermediary services.