No IGST Payable on Head Office Services Not Cross-Charged to Branches When Full ITC is Available: Delhi HC

The Delhi High Court has ruled that no IGST is payable on head office services not cross-charged to branches when full Input Tax Credit (ITC) is available. The court clarified that if the head office provides services to its branches and the branches are fully eligible to claim ITC on such services, then no separate IGST liability arises on these inter-unit transactions. This decision provides significant relief to businesses with multiple branches, streamlining their GST compliance. It aims to prevent double taxation on internal services where the overall tax neutrality is maintained through ITC.