5% GST on Supply of Computer Software to a Public Funded Research Institution, under Administrative Control of DAE: AAR [Read Order]

5% GST on Supply of Computer Software to a Public Funded Research Institution, under Administrative Control of DAE: AAR [Read Order]

The Karnataka Authority of Advance Ruling (AAR) ruled that 5% GST is applicable on supply of computer software to a public funded research institution, under the administrative control of Department of Atomic Energy (DAE).

The Applicant, SPSS South Asia Pvt. Ltd. is a Private Limited Company, registered under the Goods and Services Act, 2017 and is an authorized reseller for various IBM SPSS Software in India. The applicant is a pure trader in such software and does not develop / modify any software prior to selling it to a customer.

The applicant has sought advance ruling in respect of the supply of licenses for internet downloaded software fall within the ambit of Notification No.47/2017-Integrated Tax (Rate) dated 14th November 2017 and supply of licenses for internet downloaded software fall within the ambit of Notification No.45/2017-Central Tax (Rate) dated 14th November 2017.

The coram of Dr.M.P.Ravi Prasad and Mashood Ur rehman Farooqui ruled that the Notification No.45/2017- Central Tax (Rate) dated 14.11.2017 and Notification No.47/2017-Integrated Tax (Rate) dated November 14, 2017 stipulates the rate of CGST / IGST at the rate of 5%, if the goods of computer software is supplied to public funded research institutions subject to fulfillment of the conditions prescribed under column 4 of the said notification. In the instant case the applicant is supplying computer software to National Institute of Science Education and Research, Bhubaneswar, a public funded research institution, under the administrative control of Department of Atomic Energy (DAE), Government of India. Further the said institute has also furnished a certificate as required to fulfill the required condition.

Therefore, the AAR held that the Notification 45/2017-Central Tax (Rate), dated November 14, 2017 or Notification 47/2017- Integrated Tax (Rate), dated November 14, 2017 are applicable to the transaction or supply of the applicant.

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