RIGHT TO USE UNDER GST
Transfer of the right to use any goods for any purpose shall be the supply of service.
GST Rate: Same rate of GST as on supply of similar goods.
We can understand this with the help of an example.
Suppose GST rate on supply of agricultural, horticultural or forestry machinery (goods) is 12% and if transfer of right to use this machinery i.e. supply of services takes place then also GST rate will be 12%.
INTELLECTUAL PROPERTY RIGHTS
Meaning: Intellectual Property refers to the creations of the human mind like inventions, literary, artistic works, images and designs used in commerce. It is divided into two categories: Industrial Property like patents, trademarks etc and Copyrights which includes literacy and artistic works such as novels, poem, musical work etc. Intellectual property rights protect the interest of creators by giving them property rights over their creations.
Supply of Services: Temporary transfer or permitting the use or enjoyment of any intellectual property right shall be treated as supply of services as per schedule II of CGST Act.
GST Rate: Leasing or rental services with or without operator.
In respect of Information Technology Software – 18%
In respect of other goods – 12%