TaxTMI 
TaxTMI 
What is the HSN code for permanent transfer of intellectual property rights?
thanks in advance
permanent transfer of intellectual property rights
05 Dec 2023 
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Classification of intellectual property affects GST treatment, determining whether transfer is treated as goods or as a service.
The issue is whether permanent transfer of intellectual property rights is a supply of goods or services for GST; Schedule II treats temporary transfer as a service, while a rate notification entry for permanent transfer uses "Any Chapter," suggesting goods classification for rate purposes. Classification depends on factual nature of the transfer (e.g., software as a good under the software chapter or as a licensing service under service codes), and one must select the appropriate chapter/heading/sub-heading where possible, noting notifications cannot override the Act. (AI Summary)
The issue is whether permanent transfer of intellectual property rights is a supply of goods or services for GST; Schedule II treats temporary transfer as a service, while a rate notification entry for permanent transfer uses "Any Chapter," suggesting goods classification for rate purposes. Classification depends on factual nature of the transfer (e.g., software as a good under the software chapter or as a licensing service under service codes), and one must select the appropriate chapter/heading/sub-heading where possible, noting notifications cannot override the Act. (AI Summary)