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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) industry.X X X X Extracts X X X X X X X X Extracts X X X X ..... (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 determination of place of supply in case of supply of software/design services by a supplier l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icon 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. On some occasions, samples of such prototype hardware are then p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 prototype hardware is often an ancillary supply, whereas, chip design/software development is the princip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Difficulties faced, if any, in implementation of the above circular may please be brought to the notice of the Department. Amit Kumar Agrawal Excise & Taxation Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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