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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 ..... e of the Commissioner of Commercial Taxes Vanijya Therige Karyalaya, 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 D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Intellectual Property blocks ( IP blocks , reusable units of software logic and design layouts that can be combined to form newer designs). Based on 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y as contained in the Integrated Goods Services Tax Act, 2017 (hereinafter referred to as the IGST Act ) have been examined. In order to ensure uniformity in the implementation 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 bel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of supply contracted. 4.1 Therefore, it is clarified that the place of supply of software/design by supplier located in taxable territory to service recipient located in 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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