Branch² Intelligence

NASSCOM proposes structural rationalisation of GST norms for Head-to-Branch Office transactions

IN · 2026-10-06

India — direction and magnitude withheld

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Key takeaway

NASSCOM proposes zero-rating GST on Head Office-Branch Office services and removal of the exclusion that denies export treatment to intra-entity transactions

  1. Step 1 · The triggerNASSCOM proposes zero-rating GST on HO-BO services and removal of the intra-entity export exclusion
  2. Step 2 · Knock-onlarge Indian IT exporters' embedded GST cost on global delivery models falls, reducing working capital blockage and litigation exposure
  3. Step 3 · Knock-onGCCs and IT firms expand branch-office structures with clearer tax economics, increasing demand for Indian engineering and R&D talent
  4. Step 4 · Reaches youSME vendors to large IT exporters face repriced procurement budgets; SME talent competitors face tighter labour markets

The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.

Source: The Hindu BusinessLine

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