Treatment of IT enabled services as intermediary services: We expect the budget to give clarity on whether IT-enabled services including BPO and KPO should be treated as intermediary services. Industry experts are of the opinion that since they are in no way engaged in facilitation or providing/supply of goods or services at a pre-supply stage, these services cannot be categorized as intermediary service. (News Sources) There are increasing instances of IT department considering IT enabled services including BPO/ KPO as intermediary service and subject them to levy of GST. This has led to ambiguity over many issues and is affecting competitiveness of the Indian IT service providers. IT industry hopes that clarity on this issue should benefit the industry as a whole.