Gujarat High Court Holds AI-Based IT Services Supplied to US Firm Are ‘Export’ and Not ‘Intermediary’

The Gujarat High Court held that software consultancy, AI-powered IT infrastructure support, content creation, and customer assistance services provided by an Indian company to its US-based parent entity amount to export of services under GST law.

The Court said the company supplied services on its own account and did not arrange or facilitate transactions between two separate parties, and therefore could not be classified as an intermediary.

The Court observed that the consideration was received in foreign currency and the services were consumed outside India, satisfying export conditions.

The decision grants the assessee related GST benefits. 

[ABC India Pvt Ltd v. Union of India]