TMI Blog2020 (4) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... ply made by the applicant is covered under supply of goods and the goods supplied are covered under the HSN 8523. Applicability of N/N. 45/2017- Central Tax (Rate) dated 14th November, 2017 - HELD THAT:- The computer software are covered in the column (3) of the Table present in the Notification No. 45/2017 - Central Tax (Rate) dated 14th November, 2017 as amended from time to time. If they are sold to such recipients as covered under Column (2) of the Notification and if they are satisfies the conditions specified in Column (4) of the Notification, then the supply of such computer software would be liable to tax at 2.5% under the CGST Act. - KAR ADRG 25/2020 - - - Dated:- 23-4-2020 - DR. M.P. RAVI PRASAD AND SRI. MASHHOOD UR REHMAN FAROOQUI, MEMBER Represented by: Sri. B.S. Janapati, Consultant and Sri Mahadevan V.S., CEO ORDER UNDER SUB-SECTION (4) OF SECTION 98 OF CENTRAL GOODS AND SERVICES TAX ACT, 2017 AND UNDER SUB-SECTION (4) OF SECTION 98 OF KARNATAKA GOODS AND SERVICES TAX ACT, 2017 1. M/s. Solize India Technologies Private Limited, Gayathri Lake Front, Survy No. 188, Ring Road, Hebbal, Bengaluru 560024, (hereinafter referred to the applicant ) an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the software supplied by use could be used by the customers in different fields depending on their requirement. In short, it is a package software and not tailor made one, to suit individual requirement. d. The applicant states that their customer base is mainly Government Departments, public funded research institutions and public sector undertakings viz. HAL, VSSC, BHEL, BEML, DRDL, VRDE, CVRDE, IITs at various locations, ADA and NAL, etc. 5. The applicant states that the reasons for seeking Advance Ruling are as under:- a. By virtue of Notification No. 45/2017-Central Tax (Rate) and Notification No. 47/2017- Integrated Tax (Rate) both dated 14 th November, 2017, concessional rate of 2.5% CGST and 2.5% SGST or 5% IGST, subject to conditions mentioned in the said notifications, on goods listed in the said notification (including computer software ) was stipulated. b. In the said notifications, Computer Software was termed as Goods, for the purpose of applicability of concessional rate of GST. However, either CGST Act or SGST Act or IGST Act of 2017 did not define Computer Software used in the said notification. Hence ambiguity prevailed in the industry. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Irrespective of the type of customer, software remains the same and functions the same. However, different Company used the same as per their requirement. It is packaged software and not tailor made to suit individual requirement. 7.3 Summarily, the applicant states that these softwares as pre-designed and pre-developed and the usage of the software is controlled through encryption keys . 7.4 The applicant also quotes the FAQ in Information Technology (IT) and IT Enabled Services (ITES) and the question 1 states as under: Question 1: Whether software is regarded as goods or services in GST? Answer: In terms of Schedule II of the WBGST Act, 2017, development, design, programming, customization, adaptation, upgradation, enhancement, implementation of information technology software and temporary transfer or permitting the use of enjoyment of any intellectual property right are treated as services. But, if 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 classified under the heading 8523. FINDINGS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including computers); (b) accessories, parts, consumables and live animals (experimental purpose); (c) computer software, Compact Disc-Read Only Memory (CD-ROM), recorded magnetic tapes, microfilms, microfiches; (d) Prototypes, the aggregate value of prototypes received by an institution does not exceed fifty thousand rupees in financial year. (i) The goods are supplied to or for - (a) a public funded research institution under the administrative control of the Department of Space or Department of Atomic Energy or the Defence Research Development Organisation of the Government of India and such institution produces a certificate to that effect from an officer not below the rank of the Deputy Secretary to the Government of India or the Deputy Secretary to the State Government or the Deputy Secretary in the Union Territory in the concerned department to the supplier at the time of supply of the specified goods; or (b) an institution registered with the Government of India in the Department of Scientific and Industrial Research and such institution produces a certificate from an officer not below the rank of Deputy Secreta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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