Withdrawal of Circular No. 107/26/2019-GST on ITeS Services
<p>Circular No. 127/46/2019, issued by the Ministry of Finance, officially withdraws the previous Circular No. 107/26/2019-GST, dated July 18, 2019, which provided clarifications regarding the supply of Information Technology enabled Services (ITeS) under the Goods and Services Tax (GST). This decision comes in response to concerns raised by industry stakeholders regarding the impact and implementation of the earlier circular.</p><p><strong>Key Highlights:</strong></p><ul><li><strong>Withdrawal of Circular 107/26/2019-GST</strong>: The withdrawal of the July 2019 circular means that the clarifications issued in relation to ITeS services under GST will no longer be applicable. This includes the treatment of various doubts regarding the classification and taxability of ITeS services.</li><li><strong>Industry Concerns</strong>: Numerous representations and concerns were received from the industry regarding the implications of the clarifications provided in the earlier circular. To address these concerns and ensure uniform implementation of GST provisions, the Board decided to withdraw the circular.</li><li><strong>Ensuring Uniformity</strong>: The decision to withdraw the circular aims to create more consistency in the interpretation and application of GST laws across different field formations, avoiding discrepancies that could arise from the previous clarifications.</li></ul><p>This move is expected to bring clarity and align the treatment of ITeS services under GST with the broader principles governing the taxation of services.</p><p><a href="https://cms.plasament.com/storage/chirag-singla/circular-cgst-127.pdf">circular-cgst-127</a><br> </p>