Services of limited end-user licence as part of packaged software classifiable as supply of goods

Last updated: 09 May 2022

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The Karnataka Advance Ruling Authority (AAR) has ruled that the supply of pre-developed or pre-designed software licences, activated by keys, constitutes a supply of goods. This classification falls under tariff heading 8523 80 20. Furthermore, such supplies to public-funded research institutions are eligible for a concessional GST rate of 5% under Notification No. 45/2017-Central Tax (Rate), provided specific conditions are met.

Court :
AAR, Karnataka

Brief :
The AAR, Karnataka in the matter of M/s Keysight Technologies India Pvt. Ltd., [Advance Ruling No. KAR/ADRG/11 of 2022 dated April 21, 2022] held that, supply of license of pre-developed or pre-designed software by assessee amounts to supply of goods and said supply is covered under tariff heading 8523 80 20. Further, such supply of computer softwares to a public funded research institution are covered under Serial No. 1 of Notification No.45/ 2017-Central Tax (Rate) dated November 14, 2017 ("NN. 45/2017- CT(R)").

Citation :
Advance Ruling No. KAR/ADRG/11 of 2022 dated April 21, 2022

Daily Limit Reached