XYZ is registered in Maharashtra under GST. They are also having an Office in Chennai but the same is not registered. Chennai office is developing a software (both customized and Standard) and sending to Maharashtra unit through email.
1) Is Chennai unit required to register with GST and charge GST to Maharashtra unit?
2) If yes, it will be treated as supply of goods or services?
Chennai Office Developing Software for Maharashtra Unit Must Register for GST; Software Considered a Service Under GST Law A discussion on a forum addressed whether a Chennai office, unregistered under GST but developing software for a Maharashtra unit, needs GST registration. The consensus among respondents was that the Chennai office must register for GST and treat the transaction as a supply of services. References were made to specific rulings and guidelines, highlighting that software development is generally considered a service under GST law. Additionally, registering would allow the Chennai unit to claim input tax credit on its inward supplies. The discussion also noted the ongoing debate over classifying software as goods or services under GST. (AI Summary)
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