Infodesk India Pvt Limited Vs Union of India & Ors. (Gujarat High Court)
Gujarat High Court held that service provided by the subsidiary company to its parent company in independent capacity doesn’t fall within the category of ‘intermediary service’ under section 2(13) of Integrated Goods and Services Tax Act, 2017 [IGST Act].
Facts- The petitioner is registered under provisions of CGST Act, 2017 and is engaged in the business of content integration by adding insight that helps resolve challenges in business. The petitioner is a wholly owned subsidiary of InfoDesk. Inc. situated at USA and is established exclusively for the purpose of servicing its parent organizations’ technical requirements and for that purpose, the petitioner has developed products and services for InfoDesk. Inc. It is the case of the petitioner that it manages IT infrastructure, editorial and content creation activities, customer support and custom usage report generation for the clients of its parent company.
In pursuance of the services agreement, the parent company raises its requirements and queries which are assigned to the petitioner in form of “JIRA tickets’ which is a software application and a service desk platform. The JIRA tickets have a detailed description of the kind of service required by InfoDesk. Inc. from the petitioner. It is the case of the petitioner that it has hired employees for providing these Software Consultancy Services to its parent company which provides remuneration to these employees in exchange of these services. The employees of the petitioner are assigned with the task of methodically engaging with the raised queries of parent company on the common platform of JIRA tickets.
