SGST Advance Ruling Authority

GST – Karnataka AAR - Classification of supply of software licenses - Supply of Goods or Supply of Services – goods supplied to a public funded research institution – benefit of concessional rate - applicability of the notification No.45/2017-Central Tax (Rate) dated 14.11.2017 to the transaction of supply of statistical modelling software – HELD – the software supplied by the applicant is a pre-developed or pre-designed software and made available through the use of encryption keys and hence it satisfies all the conditions that are required to be satisfied to cover them under the definition of ‘goods’ - the goods supplied by the applicant can’t be used without the aid of the computer and has to be loaded on a computer and then after activation would become usable and hence the goods supplies is “Computer Software” and more specifically covered under “Application Software” - the Explanatory Notes to the Scheme of Classification of Services stipulates that the services of limited end-user licence as part of packaged software are excluded from the SAC 997331, that covers Licensing services for the right to use computer software and databases. Hence the supply made by the applicant is covered under “Supply of goods” under tariff heading 8523 - the applicant is supplying computer software to National Institute of Science Education and Research, Bhubaneswar, a public funded research institution, under the administrative control of Department of Atomic Energy (DAE), Government of India – the Notification 45/2017-Central Tax (Rate), dated 14.11.2017 is applicable to the supply of the applicant and transaction is chargeable to 5% GST

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