Supply of license of pre-developed or pre-designed software amounts to supply of goods covered under heading 8523

Last updated: 23 April 2021
Quick Summary
The Karnataka AAR ruled that supplying licenses for pre-developed or pre-designed software constitutes a supply of goods, specifically falling under tariff heading 8523. This classification applies even if the software is made available via the internet. Furthermore, such supplies to public-funded research institutions are eligible for a concessional GST rate of 2.5% under Notification No. 45/2017-Central Tax (Rate), provided certain conditions are met.

Court :
AAR, Karnataka

Brief :
The AAR, Karnataka in the matter of M/S. SPSS South Asia Pvt. Ltd., [Advance Ruling No. KAR/ADRG/15 of 2021, dated March 24, 2021] 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. 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 :
M/S. SPSS South Asia Pvt. Ltd., [Advance Ruling No. KAR/ADRG/15 of 2021, dated March 24, 2021]

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Bimal Jain
Published in GST
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