GST on computer software supplied to public funded research institutions

In re Keysight Technologies India Pvt. Ltd. (GST AAR Karnataka)

The Notification No.45/2017-Central Tax (Rate) dated 14.11.2017 and Notification No.45/2017-Central Tax (Rate) dated 14.11.2017 stipulates the rate of CGST / IGST @ 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 a public funded research institution, under the administrative control of DRDO, Government of India. Further the said institute has also furnished a certificate as required to fulfill the required condition.

Q1. Whether software licenses supplied by the applicant qualifies to be treated as computer software resulting in supply of goods and are therefore to be classified under Chapter Heading 8523 80 20?

A1. The software supplied by the applicant qualifies to be treated as Computer Software resulting in supply of goods and are therefore be classified under Chapter Heading 8523 80 20.

Q2. Whether the benefits of Notifications No. 45/2017-Central Tax (Rate), Notification (45/2017) No. FD48 CSL 2017, Bengaluru and Notification No. 47/2017-IGST (Rate) all dated 14.11.2017 are applicable to the software licenses supplied by the Applicant to the institutions given in the notification?

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