GST Demand Quashed As Place Of Service Outside India | HC

Case Details: Iqvia RDS (India) (P.) Ltd. vs. Union of India - [2026] 182 taxmann.com 182 (Karnataka) 

Judiciary and Counsel Details

• S.R.Krishna Kumar, J.
• Prashanth Sabarish Shivadass, Adv. for the Petitioner.
• Hemakumar K., AGA & Poojappa J., Adv. for the Respondent.

Facts of the Case

The petitioner, a data management and clinical trial services provider that is a subsidiary of a US Company, provided data management services to its US parent pursuant to a Master Service Agreement. The issue in the case was whether GST could be imposed on services where the recipient was located outside India, specifically whether the place of supply rule under Para 3.2 of Circular No. 209/1/2018-ST, dated 04-05-2018, exempted the petitioner from GST liability. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that Para 3.2 of Circular No. 209/1/2018-ST, dated 04-05-2018, specifies that the place of supply for software services, including testing, debugging, modification, customization, adaptation, upgrading, enhancement, or implementation, is the recipient’s location. It was found that the petitioner’s services fell within the definition of data management services under the Circular. Consequently, the impugned GST demand was quashed and held that no GST shall be payable on services rendered to the US parent, applying Section 9 of the CGST Act, Section 13 read with Section 16 of the IGST Act and the Karnataka GST Act.