GST Payable on Domestic Part of Non-Compete Agreement but not on Overseas Services

In re Jolarpettai Veeramuthu Sreedhar (GST AAR Tamilnadu) The Authority for Advance Ruling, Tamil Nadu, examined an application filed under Section 97 of the CGST Act, 2017 and the corresponding provisions of the TNGST Act, 2017, seeking clarity on the GST implications of non-compete and non-solicitation fees received pursuant to a share sale transaction. The applicant was a shareholder of a company engaged in bespoke software development, whose entire shareholding was sold to two purchasers—one located outside India and one in India—along with the goodwill of the business. As part of the ...