Whether software is regarded as goods or services in GST

1. In terms of Schedule II of the CGST Act 2017, development,design, programming, customisation, adaptation, upgradation,enhancement, implementation of information technology software and temporary transfer or permitting the use or enjoyment of any intellectual property right are treated as services.
2. But, if a pre-developed or pre-designed software is supplied in any medium/storage (commonly bought off-the-shelf) or made available through the use of encryption keys, the same is treated as a supply of goods classifiable under heading 8523.

( FAQ 1: IT/ITES)