Clarification regarding determination of place of supply in case of software/design services related to Electronics Semi-conductor and Design Manufacturing (ESDM) industry.

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....00015 TRADE CIRCULAR No. 39/2019 (Circular No. 118/37/2019-GST) DATED: 17.10.2019 Subject: Clarification regarding determination of place of supply in case of software/design services related to Electronics Semi-conductor and Design Manufacturing (ESDM) industry. Various representations have been received from trade and industry seeking clarification on determination of place of supply....

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....rates the various IP blocks to develop the software and the silicon or hardware design. These designs are communicated abroad (in industry standard electronic formats) either to the customer or (on behest of the customer) a manufacturing facility for the manufacture of hardware based on such designs. 2.1 In addition, the software developed is also integrated upon or customized to this hardware.....

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...., in exercise of its powers conferred by section 168 of the West Bengal Goods & Services Tax Act, 2017 (hereinafter referred to as "the WBGST Act") clarifies the same as below. 4. In contracts where service provider is involved in a composite supply of software development and design for integrated circuits electronically, testing of software on sample prototype hardware is often an ancillary s....