The circular clarifies the place of supply for data hosting ...

Indian Data Hosting Services for Overseas Clients Deemed Export Under IGST; Recipient's Location is Place of Supply.

October 15, 2024

Circulars     GST - States

The circular clarifies the place of supply for data hosting services provided by Indian service providers to overseas cloud computing service providers. It addresses three scenarios: whether the service qualifies as an intermediary service u/s 2(13) of the IGST Act, whether it relates to goods made available by the recipient u/s 13(3)(a), or whether it directly relates to immovable property u/s 13(4). The circular concludes that data hosting services do not fall under these provisions. As the place of supply does not fit specific sections 13(3) to 13(13), the default Section 13(2) applies, making the recipient's location the place of supply. Consequently, such services provided to overseas cloud computing entities can be considered export of services u/s 2(6) of the IGST Act, subject to fulfilling other conditions.

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