Export of Service

[Kaustubh Karandikar]

XYZ(India) will be selling a software to PQR(U.K.) but the same will be delivered and used by ABC(India). PQR and ABC are related. Is XYZ liable to pay GST on the sale of software?

[Ganeshan Kalyani]

What is your view Sir ?

[KASTURI SETHI]

It is taxable. The place of supply is within India as per Section 10 (1)(C) of IGST Act, 2017.

SECTION 10. Place of supply of goods other than supply of goods imported into, or exported from India. - (1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under, -

(c) where the supply does not involve movement of goods, whether by the supplier or the recipient, the place of supply shall be the location of such goods at the time of the delivery to the recipient;

[Kaustubh Karandikar]

My view is, If the software is delivered to ABC in India in physical form, then XYZ will be required to pay otherwise NO.

[Ganeshan Kalyani]

The transaction is taxable.

AI Summary

Place of supply determines GST liability for software delivered in India to a related party, depending on delivery mode. Whether GST applies depends on the place of supply and delivery modality: if the software is delivered in physical form to the related Indian recipient so that the location of the goods at delivery is in India, the transaction is treated as taxable; absent physical delivery to India, GST may not apply. The analysis centers on delivery method, location at time of transfer, and related-party delivery.