GST, software, and Jean Baptiste Alphonse Karr

The author has simply given the gist of various judgement without applying the findings given by various courts in the present practice of assessment. The vital question that remained in dispute in present regime is which software are goods liable to be charged with VAT and which software are exigible to service tax. Though it is very difficult to distinguish both types of softwares. The simple test is if the softwares are on a media and are deliverable at the point of sale being provided with the software key, these softwares were treated as goods which we can call canned and packaged software. The other types of software are customised software where these are bacically developed, designed and programmed, customised for a specific need, the same were treated to be services. In the GST regime, such types of software were put under Clause 5 of Schedule II of GST Act, 2017 and the other software whose title is transferred is goods as per clause 1 of Scheduel II of GST Act, 2017.

cestat cestat 28/04/2017