The New Blockchain and Crypto Laws Regulated in 2023 by The Govt. of India
02 Feb, 2023
Well, it is not unfamiliar that Information Technology Industry is one of the biggest benefactors to the economy in India. Several businesses in India largely involves developing, selling software either to persons or to companies across India or around the globe. Having said that, with the introduction of GST it is seen that many Entrepreneurs are left at conjecture in software must be classified as goods or service on a tax invoice and the associated GST rate. In this article, we will explain if the Software Industry comes under Goods or Service under GST.
Software is an accumulation of directive that allows a computer what to do. The software comprises an entire set of programs, procedures, and routines associated with the operation of a computer system. According to GST norms the designing, development, programming, implementation of information technology software comes under the supply of service and hence levies 18% GST rate.
The software also comes under the temporary or permanent transfer or permitting use or enjoyment of a software Intellectual Property Rights. Which will be classified as a service under the service group. 18% GST rate shall be levied for transfer or royalty payment received for transfer of IPR relating to software.
As discussed above it is seen that the software development in GST classified under services, any software in the physical form of Information Technology Software shall apply as goods under the Customs Tariff Act with HSN Code 8523 80 20. The GST rate for software sold in physical form is 18%.
Online Legal India™ is committed to helping entrepreneurs and small business owners start, also help them manage and grow their business with peace of mind at an affordable price. Our prime aim is to help them fulfil all the formalities regarding the GST cancellations and amendment of GST registration. We offer a plethora of services in GST compliances such as modification, E-waybill, LUT and filing of annual returns to make sure they are compliant and continually growing.