What is Global Capability Centre (GCC)?
A Global Capability Centre, once commonly called a captive centre, is a unit that a multinational sets up in India to serve its own group. Most are Indian subsidiaries of foreign companies. They run software engineering, analytics, finance operations, customer support, R&D and similar functions for the parent and its affiliates abroad, and are typically paid on a cost-plus basis under an intra-group services agreement.
India hosts a large and growing number of GCCs, from small teams to campuses employing thousands.
Why it matters for exporters
A GCC that bills its foreign parent for services is an exporter of services, just like an independent IT firm. Its intra-group invoices, often monthly cost-plus charges, belong on its EDF, with the parent or affiliate as the service recipient in Part 2B and the services agreement as the contract reference. Where it files depends on its setup: with its AD bank if it is outside an SEZ (software exporters can also choose STPI), or with the SEZ Development Commissioner if it is an SEZ unit.
Intra-group billing also brings specific GST questions. One condition for export of services under Section 2(6) of the IGST Act is that the supplier and recipient are not merely establishments of a distinct person. An Indian subsidiary is a separate legal entity from its parent, which matters here, but structures vary, so GCCs should confirm their position with tax advisers.
Example
Atlas Global Services India Pvt Ltd, the Bengaluru GCC of a US insurer, invoices its parent USD 2.1 million for October 2026 at cost plus an agreed markup. The invoice goes on Atlas's October EDF with its AD bank, due by 30 November 2026, and the parent's payment is matched in EDPMS when it arrives. Atlas fills its monthly form using the EDF form generator.
Common confusion
A GCC is not a branch office; it is usually a separate company. For more, read EDF for global capability centres and export of services. This is general information, not legal or tax advice.