GST On IT & Software Services
Meaning of Information Technology and software Services
Information Technology has been defined in GST one of Notification that is “ any representation , data , sound or image ,including source code and object code recorded in machine readable form.
Supply of services in relation of Information technology ,software development for development of application ,software etc. Goods and service tax is levied on “supply of services. In order to charge GST there need to be service. The word supply includes all type of services which includes IT services, software development , software products ,software sales. For treating a transaction as supply there need to be a supplier of IT Services services and received for same. Supplier means the person supplying the said goods or services or both.
Applicability of GST Registration for IT , Software Services ,development
Section 22 to 25 specifies the persons who are liable to obtain GST Registration.
Every person who is engaged in supply of for IT , Software Services , development rendering of services will be liable to be registered under the GST if
- Aggregate Turnover in a financial year of taxable supply of goods or services exceeds Rs. 20 Lac or (Turnover > 20 Lac )
- Aggregate Turnover in a financial year of taxable supply of goods or services exceeds Rs. 10 Lac if person is located at North Eastern area ( Manipur , Arunachal Pradesh , Nagaland , Meghalaya , Assam , Tripura & Mizoram , Sikkim ,Jammu & Kashmir , HimachalPradesh & Uttarakhand ) ( Turnover > 10 Lac )
GST Rate on Information Technology Services
GST Rate on Software license, product, development
GST Return filing for IT and Software Development services
- GST registration holder would have to file GSTR-1 (details of outward supplies) on the 10th of each month. ( Date may change on turnover criteria )
- GSTR-2 (details of inward supplies) on the 15th of each month and GSTR-3 (monthly return) on the 20th of each month. . ( Date may change on turnover criteria )
- Compounding taxpayers would be required to file GSTR-4 every quarter, on 18th of the month next to the quarter.(Date may change on turnover criteria )
- Finally, annual GST return must be filed by all GST registered entities on/before the 31st of December.
When to GST become Payable for IT and Software Services.
Earliest of the following date shall be considered as time of supply.
- When invoice is issued
- When invoice is not issued in 30 days from date of supply of service
- Date of receipt of services in books of account of service recipient
SAC Code For Information Technology
|998311||Management consulting and management services including financial, strategic, human resources, marketing, operations and supply chain management.|
|998312||Business consulting services including pubic relations services|
|998313||Information technology (IT) consulting and support services|
|998314||Information technology (IT) design and development services|
|998315||Hosting and information technology (IT) infrastructure provisioning services|
|998316||IT infrastructure and network management services|
|998319||Other information technology services n.e.c|
SAC Code For Software Development, Product, License
|997331||Licensing services for the right to use computer software and databases.|
|998439||Other on-line contents n.e.c.|
|998431||On-line text based information such as online books, newpapers, periodicals, directories etc|
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