Supply of Software

[Kaustubh Karandikar]

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?

AI Summary

Supply of software services: developer unit must register and treat transfers as services with GST implications.
Development, customization and implementation of software are treated as a supply of services for GST, requiring the developer unit to register and comply with GST; pre developed off the shelf software delivered in a medium or via encryption/activation keys may be classified as goods; a registered developing unit can claim input tax credit on inward supplies.