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

Indian Company XYZ Liable for GST on Software Sale to UK Company PQR per IGST Act Section 10(1)(C) XYZ, an Indian company, plans to sell software to PQR, a UK-based company, with the software being delivered and used by ABC, an Indian company related to PQR. The discussion revolves around whether XYZ is liable to pay GST on this transaction. The consensus among participants is that the transaction is taxable under GST, as the place of supply is within India according to Section 10(1)(C) of the IGST Act, 2017. This section specifies that if the supply does not involve the movement of goods, the place of supply is the location of the goods at delivery.