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TMI BlogClarification regarding determination of place of supply in case of software/design services related to Electronics Semi-conductor and Design Manufacturing (ESDM) industryX X X X Extracts X X X X X X X X Extracts X X X X ..... laya, Gandhinagar, Bengaluru-560009, Dated: 14-10-2019 COMMISSIONER OF COMMERCIAL TAXES CIRCULAR No. GST-23/2019-20 Subject: Clarification regarding determination of place of supply in case of software/design services related to Electronics Semi-conductor and Design Manufacturing (ESDM) industry - reg. Various representations have been received from trade and industry seeking clarification on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these, the 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 integrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentation of the provisions of the law, in exercise of the powers conferred by sub-section (1) of section 168 of the Karnataka Goods & Services Tax Act, 2017 (hereinafter referred to as "the KGST Act") the same is clarified as below. 4. In contracts where service provider is involved in a composite supply of software development and design for integrated circuits electronically, testing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non-taxable territory by using sample prototype hardware / test kits in a composite supply, where such testing is an ancillary supply, is the location of the service recipient as per Section 13(2) of the IGST Act. Provisions of Section 13(3)(a) of IGST Act do not apply separately for determining the place of supply for ancillary supply in such cases. 5. Difficulty, if any, in the implementation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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