CBIC Increases GST Rate on Permanent transfer of intellectual property rights from 12% to 18%
CBIC vide notification number 13/2021 Central Tax (Rate) dated 27th October, 2021 omitted 12% GST on Permanent transfer of intellectual property rights in respect of goods and inserted the same for 18% GST, earlier permanent transfer of intellectual property rights in respect of information technology software was taxed at the rate of 18% GST, Now all permanent transfer of intellectual property will be charged at 18% GST Rate.
Taxability of intellectual property rights was inserted vide notification number 41/2017 dated 14th November, 2017 where transfer of IP rights in respect of goods was kept under schedule II 6% CGST rate in Sr. no. 243 and transfer of IP rights in respect of information technology software was kept under schedule III 9% CGST Rate in Sr. No. 452P.
Now vide current notification no. 13/2021 Central Tax (Rate) dated 27th October, 2021 provision of transfer intellectual property right removed from Schedule II 6% CGST Rate and same has been added in schedule III 9% CGST Rate under Serial no.452P.