Author's Comment(s): The term "information technology software" is not defined in the CGST Act. However, it is defined under Chapters 49 and 85 to the Customs Tariff Act. which applies to the interpretation of Notification No.1/2017-Central Tax (Rate). It is defined therein to mean any representation of instructions, data, sound or image, including source code and object code, recorded in a machine readable form, and capable of being manipulated or providing interactivity to a user, by means of an automatic data processing machine.
The terms "information technology software" / "computer software" find multiple references under the GST Tariff:
- 8523 80 20 - Information technology software;
- 997331 - Licensing services for the right to use computer software and databases;
- 998434 - Software downloads;
- 99831 - Information technology services;
- 4907 00 30 - Documents of title conveying the right to use Information Technology software;
- 4911 99 10 - Hard copy (printed) of computer software.
Hence, it is imperative to read the underlying agreement(s), understand the product / service and determine the classification appropriately.