Software Exporter — GST Appellate Litigation for Refund Reversal
A SaaS exporter faced a ₹3.8 crore GST demand after the department reclassified its export of services as "intermediary services." We built the appellate defence that quashed the demand and restored every blocked refund.
A reclassification that threatened the working capital.
After a departmental audit, the exporter was hit with a substantial GST demand: the department reclassified their "Export of Services" as "Intermediary Services" under Section 2(13) of the IGST Act, arguing the firm was merely an agent for its foreign parent. This denied all previous Input Tax Credit (ITC) refunds and demanded 18% GST on three years of foreign exchange receipts — a contingent liability of ₹3.8 crores that threatened to wipe out the company's entire working capital.
How we built the defence.
Contract Analysis
We performed a granular analysis of the MSAs and SOWs to show the company exercised full control over deliverables — not merely arranging or facilitating services.
Principal-to-Principal Case
We constructed a technical defence centred on the principal-to-principal nature of the service delivery, rebutting the intermediary classification.
Appellate Filing
We filed before the Commissioner (Appeals) on "Place of Supply" rules under Section 13 of the IGST Act, citing landmark High Court precedents protecting software exporters.
Remittance Reconciliation
We reconciled every foreign inward remittance against the specific export invoices to prove compliance with the export-of-services criteria.
The capabilities we brought to bear.
GST Appellate Litigation
A structured appeal before the Commissioner (Appeals) built on IGST place-of-supply rules.
Contract & Classification Defence
MSA and SOW analysis proving principal-to-principal, not intermediary, status.
Precedent-Led Argument
Landmark High Court rulings cited to shield the exporter from misclassification.
FEMA / Remittance Mapping
Every inward remittance matched to export invoices to evidence zero-rating.
The results we delivered.
The precision of contract wording is the first line of defence in tax classification; pursuing appellate remedies is essential when administrative interpretations conflict with established legal precedents.