Software is Goods or Service under GST ?

In the Old Model GST Law released in June 2016 , Definition of Services includes intangible and definition of Goods was excluding Intangibles . Hence it could be said that the Software is to be treated as Service under GST

But under the Revised Model GST Law released in Nov 2016 , the word ” intangible ” has been removed from the definition of Goods and Services . Therefore there is an Issue  regarding treatment of software downloaded electronically whether it is to be treated as goods or Service under GST  ?

This issue has to be decided because based on this only one can determine which of following principle will apply

• Goods ( in which supply is based on principle of delivery location)
• Services (in which supply is based on principle of location of Recipient )

Definition of Goods as per Revised Model GST Law,

“services’’ means anything other than goods;

Explanation 1.- Services include transactions in money but does not include money and securities;

Explanation 2.- Services does not include transaction in money other than an activity relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. . [Section 2(92)]

Definition of Services as per  Old Draft Model GST Law -june 2016

“services’’ means anything other than goods;

Explanation: Services include intangible property and actionable claim but does not include money. [Section 2(88)]

Definition of Goods as per Revised Model GST Law,

“goods’’ means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply; [Section 2(49)] of Revised Model GST Law

Definition of Goods as per  Old Draft Model GST Law -june 2016

“goods’’ means every kind of movable property other than actionable claim and money but includes securities,  growing crops, grass and things attached to or formingpart of the land which are agreed to be severed before supply or under the contract of supply;

Explanation.– For the purpose of this clause, the  term ‘moveable property’ shall not include any intangible property. [Section 2(48)]