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?
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.
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.
" 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?
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.
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