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

Software Service Vendor Taxed at 18% Under Heading 9983; Refer to IGST Act Sections 12 & 13 for Supply Place. A vendor providing software services, such as websites and learning management systems, to educational institutions on a yearly subscription basis inquired about applicable taxes. The response clarified that under Heading No. 9983, the tax rate is 18%. For intra-State supply, the applicable taxes are CGST and SGST at 9% each, while for inter-State supply, IGST applies. The vendor was advised to refer to Sections 12 and 13 of the IGST Act, 2017, to determine the correct place of supply.