New Delhi, Sept. 15 -- Services provided by global capability centres (GCCs) to overseas entities may qualify as exports under a proposed amendment to the Integrated Goods and Services Tax (IGST) Act, potentially removing the 18 per cent GST currently applicable to such services.

The proposed amendment is likely to be discussed at the next meeting of the GST Council, which is expected to be held on October 7, according to government sources.

Under Section 13(3)(a) of the IGST Act, several GCCs are currently unable to claim export status for services performed on goods located in India, even when payments are received in foreign exchange.

The provision treats the place of supply as India in such cases, making the services liable to GST....