<p><span>In September 2024, the Ministry of Finance, Government of India, issued Circular No. 232/26/2024-GST. This circular provides crucial clarifications regarding the place of supply for data hosting services provided by service providers located in India to cloud computing service providers located outside India.</span></p><p><span><strong>Key Highlights:</strong></span></p><ol start="1"><li><span><strong>Intermediary Status:</strong> Data hosting service providers are not considered "intermediaries" when providing services to overseas cloud computing providers, as they operate on a principal-to-principal basis.</span></li><li><span><strong>Goods "Made Available":</strong> Data hosting services are not considered to be in relation to goods "made available" by the recipient (cloud computing service provider) to the data hosting service provider.</span></li><li><span><strong>Immovable Property:</strong> Data hosting services are not directly related to immovable property, and thus the place of supply is not determined by the location of the property.</span></li><li><span><strong>Place of Supply:</strong> For data hosting services provided to overseas clients, the place of supply is determined as the location of the recipient, making it an export of services if other conditions are met.</span></li><li><span><strong>Default Provision:</strong> The place of supply for data hosting services that do not fit into specific provisions of the IGST Act defaults to the location of the recipient under section 13(2).</span></li><li><span><strong>Export of Services:</strong> Data hosting services provided to overseas clients can be considered an export of services, subject to the fulfillment of other conditions in the IGST Act.</span></li><li><span><strong>Trade Notices:</strong> Recommendations for issuing trade notices to publicize the circular's contents for consistent application across field formations.</span></li></ol><p><span>This circular is significant for data hosting service providers and cloud computing companies, ensuring uniformity in the application of GST provisions.</span> <a href="https://cms.plasament.com/storage/cir-cgst-232-2024.pdf">cir-cgst-232-2024</a><br> </p>