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The software supplied by the applicant qualifies to be treated as Computer Software resulting in supply of goods and are therefore be classified under Chapter Heading 8523 80 20. The benefits of Notifications No. 45/2017-Central Tax (Rate), are applicable to the computer software supplied by the Applicant to the institutions given in the notification, subject to fulfilment of the conditions of the notification, in each case.

Classification of Service- In the instant case, the applicant has sought advance ruling in respect of the following questions:-

a) Whether software licenses supplied by the applicant qualifies to be treated as Computer Software resulting in supply of goods and are therefore to be classified under Chapter Heading 8523 80 20?.

b) Whether the benefits of Notifications No.45/2017-Central Tax (Rate), Notification (45/2017) No.FD48 CSL 2017, Bengaluru and Notification No.47/2017-IGST (Rate) all dated 14.11.2017 are applicable to the software licenses supplied by the Applicant to the institutions given in the notification?

The applicant submitted that they are resellers / distributors of Keysight products of the principal partner M/s Keysight Technologies Inc., USA in terms of the reseller agreement, in India. Thus the applicant procures the products from their principal partner and supplies to the customers in India. The applicant, in all cases, is a reseller of software and does not own the IPRs for the said software supplied.

The applicant, contended that their supply of software licence(s) qualifies to be "Supply of goods" on the grounds that as per the Explanatory Notes to the Scheme of Classification of Services the SAC 997331 excludes the services of limited end-user licence as part of packaged software.

The applicant further contends that the said supply is entitled for concessional rate of GST @ 5%, in terms of the Notification No.45/2017-Central Tax (Rate) dated 14.11.2017.

In view of the above, the issue before this authority is to decide is the classification of the supply of software licence by the applicant i.e. whether it amounts to supply of goods or services.

Held that- a) The software supplied by the applicant qualifies to be treated as Computer Software resulting in supply of goods and are therefore be classified under Chapter Heading 8523 80 20.

b) The benefits of Notifications No. 45/2017-Central Tax (Rate), Notification (45/2017), No. FD48 CSL 2017, Bengaluru and Notification No.47/2017-IGST (Rate) all dated 14.11.2017 are applicable to the computer software supplied by the Applicant to the institutions given in the notification, subject to fulfilment of the conditions of the notification, in each case.

The software supplied by the applicant qualifies to be treated as Computer Software resulting in supply of goods and are therefore be classified under Chapter Heading 8523 80 20. The benefits of Notifications No. 45/2017-Central Tax (Rate), are applicable to the computer software supplied by the Applicant to the institutions given in the notification, subject to fulfilment of the conditions of the notification, in each case.

Classification of Service- In the instant case, the applicant has sought advance ruling in respect of the following questions:-

a) Whether software licenses supplied by the applicant qualifies to be treated as Computer Software resulting in supply of goods and are therefore to be classified under Chapter Heading 8523 80 20?.

The applicant further contends that the said supply is entitled for concessional rate of GST @ 5%, in terms of the Notification No.45/2017-Central Tax (Rate) dated 14.11.2017.

In view of the above, the issue before this authority is to decide is the classification of the supply of software licence by the applicant i.e. whether it amounts to supply of goods or services.

Held that- a) The software supplied by the applicant qualifies to be treated as Computer Software resulting in supply of goods and are therefore be classified under Chapter Heading 8523 80 20.