GST on export of services_Software
This query is : Resolved
Quick Summary
07 May 2022
Dear Experts,
If software service provider from India gives his software services on subscription basis to users outside India , will this be treated as export of services? Will GST be applicable on this? Any conditions to be fulfilled?
Also IEC would be mandatory?
Regards,
If software service provider from India gives his software services on subscription basis to users outside India , will this be treated as export of services? Will GST be applicable on this? Any conditions to be fulfilled?
Also IEC would be mandatory?
Regards,
CA R SEETHARAMAN
(Expert)
07 May 2022
It will be considered as export of service.
GST not applicable in case of register under GST and furnish letter of undertaking in GST portal.
GST not applicable in case of register under GST and furnish letter of undertaking in GST portal.
CA Puja Sharma
(Expert)
07 May 2022
In my opinion, it will be treated as an export of service.
GST will apply if the aggregate turnover during the FY exceeds Rs. 20 Lakhs or Rs. 10 Lakhs(for special category states). (Notification No. 10/2017-IT dated 13-10-17)
IEC is not mandatory for all types of export of services.
GST will apply if the aggregate turnover during the FY exceeds Rs. 20 Lakhs or Rs. 10 Lakhs(for special category states). (Notification No. 10/2017-IT dated 13-10-17)
IEC is not mandatory for all types of export of services.
CA R SEETHARAMAN
(Expert)
07 May 2022
Since, exports are zero rated, one needs to register for GST to claim refunds. Thereshold not applicable for export.
07 May 2022
Thanks for the advice!
However just referred to below :
" if a pre-developed or pre-designed software is supplied in any
medium/storage (commonly bought off-the-shelf) or made available
through the use of encryption keys, the same is treated as a supply of
goods classifiable under heading 8523"
In my case , standard software will be given on subscription basis through online mode i.e foreign client will buy subscription from a website. In this case will it be treated as export of services or export of goods?
However just referred to below :
" if a pre-developed or pre-designed software is supplied in any
medium/storage (commonly bought off-the-shelf) or made available
through the use of encryption keys, the same is treated as a supply of
goods classifiable under heading 8523"
In my case , standard software will be given on subscription basis through online mode i.e foreign client will buy subscription from a website. In this case will it be treated as export of services or export of goods?
CA R SEETHARAMAN
(Expert)
08 May 2022
It will fall under export of service.
08 May 2022
Noted sir!
Will this be classified under OIDAR (Online Information Database Access and Retrieval) Services under GST.
Following is an illustrative list of such services:
(i) providing cloud services
(ii) provision of e-books, movie, music, software and other intangibles through telecommunication networks or internet
(iii) providing data or information, retrievable or otherwise in electronic form through a computer network
(iv) online supplies of digital content (movies, television shows, music and the like)
(v) digital data storage
(vi) Supply of software and updating thereof
(vii) Supply of distance teaching
(viii) Website supply, web-hosting, distance maintenance of programmes and equipment
(ix) online gaming.
Will this be classified under OIDAR (Online Information Database Access and Retrieval) Services under GST.
Following is an illustrative list of such services:
(i) providing cloud services
(ii) provision of e-books, movie, music, software and other intangibles through telecommunication networks or internet
(iii) providing data or information, retrievable or otherwise in electronic form through a computer network
(iv) online supplies of digital content (movies, television shows, music and the like)
(v) digital data storage
(vi) Supply of software and updating thereof
(vii) Supply of distance teaching
(viii) Website supply, web-hosting, distance maintenance of programmes and equipment
(ix) online gaming.
CA R SEETHARAMAN
(Expert)
09 May 2022
Yes, it will also fall under OIDAR.
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