Levy of GST— In the instant case, the applicant has sought Advance Ruling on the following questions:

1. Whether the transaction of transfer of right to do integration testing, install and market software from Tamilnadu cost centre to Karnataka Cost centre shall be leviable to GST given that such transaction is being executed between two cost centers of same entity.

2. If the answer to the above is affirmative then whether such supply be considered as goods or services?

The first question to be answered is whether the transaction of transfer of right to do integration testing, install and market software by the applicant to Karnataka Cost center shall be leviable to GST given that such transaction is being executed between two cost centers of the same Company.

To answer this question, it should be seen if the transaction is leviable to GST in the first place as the same is said to be executed between two distinct entities of the same company. Hence the transaction to be leviable to GST should fall within the ambit of supply and then such supply should be between two distinct entities. 

Held that— 1. The transaction of transfer of right to do integration testing, installation and marketing software from the applicant to Karnataka Cost centre of the company is leviable to GST.

2. The supply of such right is supply of services.