Export of Service

[JOHN SHANNEL]

A firm (X) (located outside india) entered into a contract with an Indian firm (Y) for music right. The music to be used only in indian locaion i.e it is Goe-tagged in digital platform and can be used only in india like youtube etc.

Since the music rights is Geo-tagged to India can this be considered as export of services under section 16 of IGST

[Rajagopalan Ranganathan]

Sir,

I feel the activity is import of service since the owner of music right is located outside India. The music is to be used in Indian location i.e it is Geo-tagged in digital platform and can be used only in India like youtube etc., that is within taxable territory. Therefore it will be treated as an export of service and liable to IGST and applicable customs duties.

AI Summary

Export of service: geo tagged digital music limited to India raises debate over IGST territorial character and liability. Whether licensing music by a non resident geo tagged for use only in India is an export of service under section 16 IGST is queried; the respondent notes the supplier is outside India, calls it an import of service, but also states that because the music is used within taxable territory it will be treated as an export of service and liable to IGST and customs, highlighting tension between supplier location and place of use in tax classification.