Taxes to be paid by Vendor providing Software Services to Educational Institutions

[Vignan World]

Sir,

What kind of Taxes need to be paid by the Vendor who is providing Software Services, such as Websites, Learning Management system, Web Applications to Educational Institutions on yearly subscription basis.

With regards,

Vignan World

[KASTURI SETHI]

Heading No.9983 and rate of tax is 18%. If place of supply is intra-State, it is CGST + SGST ( 9 % +9%) and if inter-State supply it is IGST. Read Section 12 & 13 of IGST Act, 2017 in order to determine correct place of supply.

AI Summary

GST on software services to educational institutions: taxable at standard rate; place of supply determines IGST or CGST and SGST. Supply of software services to educational institutions on subscription is taxable under the goods and services tax regime at the applicable standard rate. If the supply is intra State, the tax is levied through central and State components; if inter State, it is levied as a unified inter State tax. Determination of intra State or inter State character is governed by the place of supply rules in Sections 12 and 13 of the IGST Act.