Page 168 - GSTL_21st May 2020_Vol 36_Part 3

414 GST LAW TIMES [ Vol. 36
(b) In view of the above, the applicant states that he is of the view that
the claim of the customers is correct inasmuch as “Computer Soft-
ware” provided by them qualifies to be treated as “goods” and cov-
ered by the Notifications mentioned above.
Personal hearing/Proceedings held on 10-3-2020
7. Sri B.S. Janapathi, Consultant along with Sri Mahadevan. V.S. CEO
appeared for personal hearing proceedings on 10-3-2020 before this authority
and reiterated the facts and submitted as under :
7.1 The applicant is a reseller of Software, which it buys from the de-
velopers of these software and re-sell these softwares to its customers. These
softwares are used across the globe by companies similar to the Indian Compa-
nies. These software are not developed specific to any customer requirement.
7.2 Irrespective of the type of customer, software remains the same and
functions the same. However, different Company used the same as per their re-
quirement. It is packaged software and not tailor made to suit individual re-
quirement.
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, en-
hancement, 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 & Discussion
8. We have considered the submissions made by the Applicant in their
application for advance ruling as well as the submissions made by him when he
appeared for the personal hearing. We have also considered the issues involved,
on which advance ruling is sought by the applicant, and relevant facts.
8.1 At the outset, we would like to state that the provisions of both the
CGST Act and the KGST Act are the same except for certain provisions. There-
fore, unless a mention is specifically made to such dissimilar provisions, a refer-
ence to the CGST Act would also mean a reference to the same provisions under
the KGST Act.
8.2 The applicant states that he purchases the off-the-shelf software
which are not developed for any specific client and the same software is sold to
all the clients. Hence we agree that the software sold by the applicant is a pre-
developed or predesigned software and made available through the use of en-
cryption keys and hence it satisfies all the conditions that are required to be satis-

GST LAW TIMES  21st May 2020  168