GST on Use of Copyrights or IPR or Royalty Payments


GST ON COPYRIGHT USECopyright is a right given by the law to creators of literary, dramatic, musical and artistic works and producers of cinematographic films and sound recordings.Apart from that there are scientific discoveries, formula,inventions and software codes which are having Intellectual Property Rights .The services related to temporary transfer of use of such copyrighted materials or IPRs were not taxable under Service Tax regime although there was always tussle between taxpayer and the department on the taxability  issue . CBEC later issued   Notification No. 3/2013-ST dated 1.3.2013, vide which services provided by way of temporary transfer or permitting the use or enjoyment of a copyright  were made exempt.However , under GST regime , the temporary transfer of copyright is taxable as taxable supply of service .

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