Open-source software (OSS) is an approach in which software is made available with its source code and an open-source license. Here the owner supplies definite rights to alter and distribute the software free of cost to anyone and for any purpose. Need for the use or implementation of open source software in government sector is increasing. The use of open source software posses’ different angles & multi views to understand. Understanding of different terms related to open source or having same meaning but used in different context is essential to describe Open Source Software. This study focuses on issues related to its licensing, need of open source software, open source software in Government and its challenges along with recommendations will be explored; finally study will concluded.