GST on Purchase
of Software licenses or subscriptions
Software
treated as Service
· Treated as Import of Service
· Liable to pay tax on Reverse charge Mechanism (RCM)
@ 18% (RCM)
· Input tax credit can be claimed at the same time
when tax paid
Software
treated as Goods
· These softwares are generally imported in form of
DVD, CD or pen drive over the counters along with an encryption key.
· It is liable for Custom duty payment
· GST @ 18% is liable to be paid
· Input tax credit can be claimed when tax paid.
Part 1 - Click here
