CESTAT remands Issue on Exclusions made for Determining ‘Export Turnover on the Services’ applying Formula A, Rules in favour of HSBC Electronic

The CESTAT has ruled in favor of HSBC Electronic in a case involving the exclusion of certain amounts when determining export turnover under GST rules. The tribunal remanded the matter back to the authorities to decide the correct calculation method for export turnover in line with applicable formulas. This ruling clarifies that the exclusion of certain amounts must be consistent with the prescribed formula under GST, and any discrepancies should be reviewed. The decision benefits businesses by providing clarity on the calculation of export turnover and ensures that the proper method is applied for tax assessments.