What is the tax rate for software development and related services?
Whether software is treated as a goods or services?
GST tax rate for software developers is 18% with full Input Tax Credit.
For example, if you are paying rent for your office, you can claim the input credit of tax paid on rent. All other expenses on which tax is paid can be claimed against output liability of tax.
For following services under software category are to be taxed at 18%
GST is applicable to software services and the rate is 18%. The GST rate for software sold in physical form is also 18%.
The software itself in the physical form is considered as Goods and Software Development is considered as Service.
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