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

AI Summary

Packaged Downloadable Software: Exempt from Service Tax, but 18% GST Likely Applies Under New Regime. A user inquired about the applicability of service tax and GST on packaged downloadable software, questioning whether it remains exempt from service tax and if only 5% VAT/GST applies from July 1. A respondent clarified that information technology software is exempt from service tax if customs duty, central excise duty, or VAT is applicable. However, under the GST regime, software is likely to be taxed at 18%.