GST AAR –
Advance ruling authority has given important ruling in relation to whether the pre-developed / pre-designed software is goods or services?. In case of SPSS South Asia Pvt Ltd, the advance ruling authority observed that,
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’ – Further, the goods which are supplied by the applicant can’t be used without the aid of the computer and has to be loaded on a computer and after activation would become usable and hence the goods supplied is “Computer Software” and more specifically covered under “Application Software” – Further 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” and the said supply is covered under tariff heading 8523 – Notification No. 45/2017- Central Tax (Rate) dated 14.11.2017 and Notification No. 47/2017-Integrated Tax (Rate) dated 14.11.2017 stipulates the rate of CGST / IGST as @ 5%, if the goods or computer software is supplied to public funded research institutions subject to fulfilment of the conditions prescribed under column 4 of the said notification – In the instant case, 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 – Further the said institute has also furnished a certificate, as required, to fulfil the required condition:
Note: Though AAR are applicable to the same party these can be used as reference.
