Software - goods or services under GST ?

Classification of Software

Classification as Service: It has been clarified that development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of IT software and temporary transfer or permitting the use or enjoyment of any intellectual property right are treated as "services" in terms of Schedule II of the CGST Act 2017. With respect to software licensing, it is clarified that the contract of supply and terms and conditions of End User License Agreement (EULA) are important to determine whether or not there has been 'temporary transfer or permitting the use or enjoyment of any intellectual property right'.

 Classification as Goods: Where a pre-developed or pre-designed software is supplied in any medium/ storage (commonly bought off-the-shelf) or made available through the use of encryption keys, the same is treated as a supply of goods classifiable under heading 8523.

https://www.cbic.gov.in/htdocs-cbec/gst/sectoral-faq-it-ites.pdf