Service Tax on software

[Guest]

In reference to topic: https://www.taxtmi.com/article/detailed?id=6871

packaged software is exempt from service tax. The software I sell is packaged and downloadable so no custom duty is applicable. Is that also true in case of GST? Is only 5% VAT/GST now applicable from july 1?

Thanks,

Parth

[Rama Krishana]

Information technology Software is exempt from service tax subject to conditions where customs duty / central excise duty / vat etc. is liable to be paid.

Under GST regime, software most likely to be taxed @18%

AI Summary

GST on software likely to attract standard rate, reversing prior service-tax exemption for packaged downloadable software. Packaged and downloadable software qualified for service-tax exemption where related indirect duties (customs duty, central excise, VAT) applied; under GST the software is likely to be taxable at a standard rate rather than covered by the prior exemption.