High GST Rate Applicable for Licensed Software’s DVDs & CDs: AAR

So DVDs and CDs are in the news again, Actually, AAR (Authority for Advance Rulings) Get to know about AAR (Authority for Advance Rulings) under GST India along with its mechanism. Also, we have described its objectives, powers, orders. Read More Tamil Nadu released order and clarifies that the Licensed Software’s CDs and DVDs can’t be considered as e-books for attracting GST at a lesser rate of 5%. The order comes in an appeal where the application is filed by Venbakkam Commander Janardhanan, Proprietor M/s Law Weekly Journal, and the applicant is engaged in supplying printed law journals and DVDs of the law journal.

The applicant seeks advance ruling on the issue that Whether the assessee which is engaged in publishing and selling of law journals content from books in the electronic medium in CDs and DVDs which will also have a Software for searching and navigation will come under the category of E-books or not? If yes then it will attract a lesser rate of GST as per the notification related to E-Books released on 26/07/2018.

Additionally, the application also includes some issues related to the utilization of ITC A complete guide for understanding the basics of input tax credit and it calculation with detailed examples under GST (Goods and Services Tax) India. Read More which were used by the applicant and adjustment/ reversal of the credit which was availed. These don’t come under any of the categories included in Section 97(2) of the act so these don’t come under the coverage of this authority.

The bench consists of Manasa Gangotri Kata and KurinjiSelvaan V.S. clarified that “the supply of DVDs/CDs with The Law Weekly Desktop’ software along with end-user license and the supply of access to the on-line database on the applicant’s website are not eligible to avail the benefit of entry at SI.No. 22 of Notification No. 13/2018-C.T.(Rate) dated 26.07.2018 notification dated 26.07.2018.” And for the other issues included in the application, the Authority refused to say anything due to the jurisdiction.