Place of supply of product development charges

[KARAN VERMA]

Sir

My customer is outside India and I m exporting goods to such customer. Now, I have to recover product development charges from such customer.

What will be place of supply for this service. Whether I have to charge GST on such recovery.

[Ganeshan Kalyani]

Sir, refer sec.13 of IGST Act, 2017.

[KASTURI SETHI]

See Section 13(2) of IGST Act. Location of recipient of service is the place of supply. It is export of service, it (service) being integrated to export of goods.

AI Summary

GST Applicability on Export Product Development Charges: Place of Supply Defined by IGST Act Section 13(2) A user inquired about the place of supply for product development charges when exporting goods to a customer outside India, questioning whether GST should be applied to such charges. Two responses referenced Section 13 of the IGST Act, 2017. The first response suggested consulting this section, while the second clarified that according to Section 13(2), the location of the service recipient is the place of supply, indicating that the service is considered an export of service integrated with the export of goods.