Sir, A GST registered person in Mumbai ABC Ltd. provides Space on the Cloud on rental basis to the recipient registered under GST in Noida XYZ Ltd. Now, what would be the place of supply for such services, what would be its SAC Code and what should ABC Ltd. charge in its invoice IGST or CGST+SGST.
In our view, POS would be Noida and he should charge IGST. The nature of service should be OIDAR services. Please clarify?
Cloud services are clearly covered under definition of OIDAR u/s 2(17)(ii) of the IGST Act, 2017.
As both parties are located in India, the POS will ber determines as per Sec 12(2) of IGST Act and will be the location of the recipient i.e. Noida.
Accordingly you should charge IGST. We agree with your conclusion.
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