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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....Panchkula. To All the Dy. Excise & Taxation Commissioner (ST), in the State of Haryana. Memo No. 2893/GST-2 Panchkula, date the 07-11-2019 Subject: Clarification regarding determination of place of supply in case of software/design services related to Electronics Semi-conductor and Design Manufacturing (ESDM) industry. The circular seeks to clarify the ....

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....he Indian company digitally integrates 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 upo....

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....ions of the law, the Commissioner of State Tax, in exercise of its powers conferred by section 168 of the Haryana Goods & Services Tax Act, 2017 (hereinafter referred to as "the HGST 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 p....