GST UPDATE

???? CA. Praveen Sharma Ki Desk Se ?????

?The Circular No. 232/26/2024-GST issued by the CBIC on 10th September 2024, clarifies the place of supply for data hosting services provided by Indian service providers to overseas cloud computing companies. Here is the summary:

?Intermediary Status: Data hosting providers are not intermediaries under Section 2(13) of the IGST Act. They provide services on their own account to cloud providers, not arranging services between the cloud provider and its end users.

?Goods “Made Available” : The services provided by data hosting companies cannot be classified as related to goods “made available” by the recipient (cloud provider), and hence the place of supply cannot be determined under Section 13(3)(a).

?Immovable Property : Data hosting services are not considered services directly related to immovable property. Thus, the place of supply cannot be determined under Section 13(4).

?Place of Supply : The place of supply defaults to Section 13(2), i.e., the location of the recipient (overseas cloud provider), making the service eligible for export of services under GST, subject to other conditions.

CA. Sharma Praveen

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