The Central Government, on Friday, notified exemption to services supplied to the neighbor country, Nepal where payments are made in Indian currency to the Indian service providers under the new Goods and Services Tax (GST) regime.
Earlier, the GST Nepal traders could claim exemption only if they received payment in convertible foreign currency which had been caused a huge burden on such traders who usually make payments to service suppliers in the Indian currency.
Nepali traders import various services from India namely, transportation, insurance, handling of shipping line containers, container freight stations, among others that are also associated with third-country trade. Also, India is one of the prominent suppliers of software and other information technology-related products, business process outsourcing, knowledge process outsourcing and legal product outsourcing.
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