Head Office Services to other State Branches to attract 18% GST

1. The salary for services like accounting, IT, human resource, provided by the head office of a company to its branch offices in other states will attract an 18% GST. 
2. The activities between two offices are treated as supplies under the GST law, according to an order passed by the Karnataka bench of the Authority for Advance Ruling.
3. Although the GST charged on such supplies can be claimed as input tax credit, companies which are exempt from the GST like education, hospitals, alcohol and petroleum will not be able to claim credit