💻 Is Computer Software a Good or a Service? 💻

The question of whether computer software is a good or a service has puzzled many businesses. Under the GST Act, the classification depends on the type of software you’re dealing with.

Here’s a simple breakdown:

✨ Off-the-Shelf Software = Goods ✨
• Definition: Pre-designed, mass-produced software.
• Examples: Software available in retail stores, on CD-ROMs, or with encryption keys.
• Tax Treatment: Treated as goods under GST.

💎 Customized Software = Services 💎
• Definition: Software tailored to meet specific customer needs.
• Examples: Custom development, design, programming, and upgrades.
• Tax Treatment: Treated as services under GST.

🌟Online vs. Non-Electronic Procurement 🌟
• Online Software: Often customized, qualifying as a service.
• Non-Electronic Medium: Usually off-the-shelf, qualifying as goods.

Understanding whether your software transactions are goods or services is crucial for accurate GST compliance. Off-the-shelf software is classified as goods, while customized software is classified as services. This classification impacts how you handle your taxes, so make sure you categorize your software correctly!